60.1K
Verified Solution
Link Copied!
Calculate financial ratios for East Coast and compare them to their industry. What conclusions do you draw?
Complete proforma for the next year. Assume:
oSales grow at 20%.
oThe firm stays as efficient as they currently are.
oThe firm would keep the same dividend payout ratio.
oExternal financing needed would come from debt. The interest rate would be 6.5%.
25% 6 7 Tax rate 8 9 Sales 10 COGS 11 Other expenses 12 Depreciation 13 EBIT 14 Interest 15 Taxable income $ 550,424,000 397,185,000 65,778,000 17,963,000 $ 22,104,632 4.360% $ 69,498,000 9,900,000 $ 59,598,000 14.899,500 $ 44,698,500 16 Taxes $ $ $ 19,374,500 25,324,000 2019 2020 2019 2020 $ 9,580,100 17,032,300 15,382,000 987,900 42,982,300 Liabilities & Equity Current liabilities Accounts payable Accrued expenses Total current liabilities $ 38,133,900 $ 40,161,400 4,875,600 5,723,700 $ 43,009,500 $ 45,885,100 $ $ 136,674,000 $ 136,674,000 17 Net income 18 19 Dividends 20 Add to RE 21 22 Assets 23 Current assets 24 Cash and equivalents 25 Accounts receivable 26 Inventory 27 Other 28 Total current assets 29 30 Property, plant, & equipment 31 Less accumulated depreciation 32 Net PP&E 33 Intangible assets and others 34 Total fixed assets 35 36 37 38 39 40 Total assets 41 42 Growth rate 43 Minimum FA purchase 44 $ 364,255,000 $ 412,032,000 S (84,489,000) (102,452,000) S $ 279,766,000 $ 309,580,000 $ $ 6,095,000 $ 285,861,000 Long-term debt Total Long-term liabilities 507,032,000 (124,556,632) Stockholders' equity 382,475,368 Preferred stock Common stock Capital surplus Accumulated retained earnings Less treasury stock Total equity $ 1,773,000 26,730,000 10,620,000 120,728,800 (10,692,000) $ 149, 159,800 Total liabilities and Shareholders' Equity $ 328,843,300 $ 328,843,300 20% 95,000,000 Loan Payment Loan Payment $ 6,175,000.0 ($7,274,857.01) 1,099,857.0 S 25% 6 7 Tax rate 8 9 Sales 10 COGS 11 Other expenses 12 Depreciation 13 EBIT 14 Interest 15 Taxable income $ 550,424,000 397,185,000 65,778,000 17,963,000 $ 22,104,632 4.360% $ 69,498,000 9,900,000 $ 59,598,000 14.899,500 $ 44,698,500 16 Taxes $ $ $ 19,374,500 25,324,000 2019 2020 2019 2020 $ 9,580,100 17,032,300 15,382,000 987,900 42,982,300 Liabilities & Equity Current liabilities Accounts payable Accrued expenses Total current liabilities $ 38,133,900 $ 40,161,400 4,875,600 5,723,700 $ 43,009,500 $ 45,885,100 $ $ 136,674,000 $ 136,674,000 17 Net income 18 19 Dividends 20 Add to RE 21 22 Assets 23 Current assets 24 Cash and equivalents 25 Accounts receivable 26 Inventory 27 Other 28 Total current assets 29 30 Property, plant, & equipment 31 Less accumulated depreciation 32 Net PP&E 33 Intangible assets and others 34 Total fixed assets 35 36 37 38 39 40 Total assets 41 42 Growth rate 43 Minimum FA purchase 44 $ 364,255,000 $ 412,032,000 S (84,489,000) (102,452,000) S $ 279,766,000 $ 309,580,000 $ $ 6,095,000 $ 285,861,000 Long-term debt Total Long-term liabilities 507,032,000 (124,556,632) Stockholders' equity 382,475,368 Preferred stock Common stock Capital surplus Accumulated retained earnings Less treasury stock Total equity $ 1,773,000 26,730,000 10,620,000 120,728,800 (10,692,000) $ 149, 159,800 Total liabilities and Shareholders' Equity $ 328,843,300 $ 328,843,300 20% 95,000,000 Loan Payment Loan Payment $ 6,175,000.0 ($7,274,857.01) 1,099,857.0 S
Answer & Explanation
Solved by verified expert
