The financial statements of Eagle Sport Supply are shown in the table below. For simplicity, "Costs" include interest. Assume that Eagle's assets are proportional to its sales. Assume a growth rate of 30% in revenue, expenses, and assets in 2023. The tax rate will remain constant. Income Statement Sales Costs $ 3,350 1,450 Pretax income Taxes (at 40.0%) $ 1,900 760 Net income $ 1,140 2022 Balance Sheet, Year-End 2021 Net assets $ 5,400 $ 5,100 Total $ 5,400 $ 5,100 Debt Equity Total 2022 $ 2,200 3,200 2021 $ 2,100 3,000 $ 5,400 $ 5,100 a. Assume that the dividend payout ratio is fixed at 50% and the equity-to-asset ratio is fixed at two-thirds. What is the internal growth rate for 2023? b. What is the sustainable growth rate for 2023?
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- The financial statements of Eagle Sport Supply are shown in the table below. For simplicity, "Costs" include interest. Assume that Eagle's assets are proportional to its sales. Assume a growth rate of 30% in revenue, expenses, and assets in 2023. The tax rate will remain constant. Sales Income Statement Costs $ 2,750 1,150 Pretax income Taxes (at 30.0%) $ 1,600 480 Net income $ 1,120 2021 Balance Sheet, Year-End 2022 Net assets $ 4,800 $ 4,500 Debt Total $ 4,800 $ 4,500 Equity Total 2022 $ 1,900 2,900 2021 $1,800 2,700 $ 4,800 $4,500 a. Assume that the dividend payout ratio is fixed at 50% and the equity-to-asset ratio is fixed at two-thirds. What is the internal growth rate for 2023? b. What is the sustainable growth rate for 2023? Note: For all requirements, do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. a. Internal growth rate b. Sustainable growth rate % %Consider the following income statement for Jordan Corporation:Jordan CorporationIncome Statement Sales₱ 38,000 Costs18,400 Taxable Income₱19,600 Taxes (34%)6,664 Net Income₱12,936 Dividends₱5,200 Addition to Retained Earnings7,736 A 25% growth rate in sales is projected. Prepare a pro forma income statement assuming costs vary with sales and the dividend payout ratio is constant. What is the projected addition to retained earnings?Assuming Sunny-D Cafe has a tax rate of 30 percent, calculate sales for the firm given the following financial information: net income of $37,900; interest expense of $11,500; depreciation expense of $14,200; and costs of $80,900. Points: 1 A. $144,500 B. $154,143 C. $160,743 D. $165,114 E. Remember to breathe
- The financial statements of Eagle Sport Supply are shown in the table below. For simplicity, "Costs" include interest. Assume that Eagle's assets are proportional to its sales. Assume a growth rate of 30% in revenue, expenses, and assets in 2020. The tax rate will remain constant. Income Statement Sales Costs Pretax income Taxes (at 40.0%) Net income 2019 Net assets $5,400 Total $3,350 1,450 $1,900 760 $1,140 Balance Sheet, Year-End 2018 $5,100 $5,400 $5,100 2019 $2,200 3,200 Debt Equity Total $5,400 6.42 x % a. Assume that the dividend payout ratio is fixed at 50% and the equity-to-asset ratio is fixed. What is the internal growth rate for 2020? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) X Answer is complete but not entirely correct. Internal growth rate 2018 $2,100 3,000 $ 5,100 b. What is the sustainable growth rate for 2020? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal…The financial statements of Eagle Sport Supply are shown in the table below. For simplicity, "Costs" include interest. Assume that Eagle's assets are proportional to its sales. Assume a growth rate of 30% in revenue, expenses, and assets in 2020. The tax rate will remain constant. Income Statement Sales Costs Pretax income Taxes (at 40.0%) Net income Net assets Total 2019 $5,400 $5,400 Internal growth rate $3,350 1,450 $1,900 760 $1,140 Balance Sheet, 2018 $5,100 Sustainable growth rate $ 5,100 Year-End % Debt Equity Total a. Assume that the dividend payout ratio is fixed at 50% and the equity-to-asset ratio is fixed. What is the internal growth rate for 2020? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) 2019 $ 2,200 3,200 $5,400 2018 $ 2,100 3,000 $ 5,100 b. What is the sustainable growth rate for 2020? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) %Consider the following income 'statement for the Mickey Mouse Corporation: Mickey Mouse Corporation Income Statement Sales Costs Taxable income Taxes (22%) Net income Dividends $ 2,200 Addition to retained earnings 5,912 $ 45,600 35,200 HEIR JORDAN CORPORATION Pro Forma Income Statement $ 10,400 2,288 $8,112 The projected sales growth rate is 18 percent. Prepare a pro forma income statement assuming costs vary with sales and the dividend payout ratio is constant. (Do not round) Intermediate calculations and round your answers to the nearest whole number, e.g.. 32.)
- Suppose that X company has a total sales of $340,000. And a net income after tax of $47,600. Calculate the operating margin if you knew that the income tax rate is 30% and the interest rate is 15% A) 25.00% B) 35.30% C) 31.30% D) 23.50%Use the following information for Smith Brothers, Inc: EBIT / Revenue 15.00% Government Tax Rate 35.00% Revenue / Assets 1.80 times Current Ratio 2.40 times EBT / EBIT 0.80 times Assets / Equity 1.90 times Smith Brothers, Inc.'s return on assets (ROA) is closest to: A. 14.04%. B. 14.82%. C. 24.71%. D. 26.68%.Problem #1: Proforma Statements Prepare a common size income statement given the following information: Revenues = $100,000 COGS = $43,000 SG&A = $22,000 Interest Owed = $5,000 Tax Rate = 40% Problem #2: Proforma Statements Prepare a pro forma income statement from the data and common size income statement from #1, assuming that the sales will grow by 5% and all expenses but interest and taxes will scale with sales. 1, Use your plan of action to solve each problem, clearly outlining the procedures used, providing a concise explanation of each step, labeling relevant formulas, and showing worked out calculations and complete solutions. You may use an Excel spreadsheet or a calculator to help you perform the necessary calculations, but all corresponding work must be shown completely. 2. Answer all questions posed in the problem; if applicable, analyze and evaluate your results and provide a contextual explanation of the solutions you obtained. 3. Review your…
- Assume that a company has the following data: EBIT=1,200 EBITDA Margin=9.4% Tax rate 39% Net PP&E=2680 Net Working Capital=812 Sales = 14351 Depreciation and Amortization=376 Stores=400 Calculate Return on Capital (or ROIC) Please show your work.A company has the following income statement. What is its net operating profit after taxes (NOPAT)? Round it to a whole dollar. Will need to find EBIT first. Sales $ 1,050 Costs 600 Depreciation 170 EBIT $ ? Interest expense 50 EBT $ ? Taxes (24%) ? Net income $ ?Mee Kolok Berhad had developed the following income statement for its operations ended 30 June 2022. Sales (-) Variable Cost (-) Fixed Costs Earnings Before Interest and Taxes Interest Expense Earnings Before Tax Taxes @ 28% Net Income RM 384,000 230,400 96,000 57,600 19,200 38,400 10,752 27,648 Q1) Current Earning per Share (EPS) is RM3.60. Calculate the new EPS for Mee Kolok Berhad Berhad next year if sales increase by 15%.