Question

Income Statement  
Sales   $198,520
Costs Except Depreciation   (99,010)
EBITDA   $99,510
Depreciation   (6,080)
EBIT   $93,430
Interest Expense (net)   (440)
Pretax Income   $92,990
Income Tax   (23,248)
Net Income   $69,742

Balance Sheet  
Assets  
Cash and Equivalents   $15,020
Accounts Receivable   1,940
Inventories   4,090
Total Current Assets   $21,050
Property, Plant and Equipment   10,000
Total Assets   $31,050
  
Liabilities and Equity  
Accounts Payable   $1,410
Debt   4,080
Total Liabilities   $5,490
Stockholders' Equity   25,560
Total Liabilities and Equity   $31,050

Jim's Espresso expects sales to grow by 10.1% next year. Using the following statements and the percent of sales​ method, forecast:

a. Costs

b. Depreciation

c. Net Income

d. Cash

e. Accounts receivable

f. Inventory

g.​ Property, plant, and equipment

​

The Tax Cuts and Jobs Act of 2017 temporarily allows​ 100% bonus depreciation​ (effectively expensing capital​ expenditures). However, we will still include depreciation forecasting in this chapter and in these problems in anticipation of the return of standard depreciation practices during your career.

Answer 1

Income Statement Balance Sheet Current Year Next Year Current Year Next Year Amount % of sales Amount % of sales Amount %Of sales Amount %Of sales Sales Costs EBITDA $1,98,520.00 $ 99,010.00 $ 99,510.00 $6,080.00 93,430.00 440.00 $92,990.00 $23,248.00 69,742.00 100% $2,18,570.52 50% $1,09,010.01 50% $109,560.51 396 $ 6,694.08 47% $1,02,866.43 0% $ 484.44 47% $1,02,381.99 12% $25,596.05 35% $ 76,785.94 100% Cash and Equivalents Accounts Receivables Inventories Total Current Assets Property plant and Equipment Total Assets 8% 1% 2% 11% 5% 16% $16,537.02 $ 2,135.94 $ 4,503.09 $23,176.05 $11,010.00 $34,186.05 5 except Depreciation 1% 7 Depreciation 11% EBIT Interest Expense(net) Pretax Income Income Tax Net Income 47% 9 10 11 12 13 14 15 16 17 31050 4796 12% 35% 1% $ 1,552.41 2% $ 4,492.08 3% $ 6,044.49 13% $28,141.56 16% $34,186.05 Accounts payable 1410 1% Total Liabilities Stockholder's Equity Total Liabilities and Equity 5490 a. Costs b. Depreciation C. Net Income 1,09,010.01 6,694.08 76,785.94 31050 d. Cash e. Accounts Receivable f. Inventory $16,537.02 S 2,135.94 $4,503.09 11,010.00 Property, Plant and Equipment