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E Jim's Espresso Income Statement and Balance Sheet Income Statement: Sales 200,000 Costs except Depr. EBITDA (100,000) 100,000 Depreciation (6,000) EBIT 94,000 Interest Expense (net) Pretax Income Income Tax Net Income (400) 93,600 (32,760) 60,840 F Balance Sheet Assets Cash and Equivalents Accounts Receivable Inventories Total Current Assets Property Plant and Equipment Total Assets Liabilities and Equity Accounts Payable Debt Total Liabilities Stockholders' Equity Total Liabilities and Equity G 15,000 2,000 4,000 21,000 10,000 31,000 1,500 4,000 5,500 25,500 31,000 H Problem 18-4 Jim's expects sales to grow by 10% next year. Using the percent of sales method, forecast: a. Costs -50% b. Depreciation -3% c. Net Income 30% d. Cash 7.50% e. Accounts Receivable 1.00% f. Inventory 2.00% g. Property, Plant and Equipment 5.00% Next year's forecasted sales: a. Costs b. Depreciation. c. Net Income. d. Cash e. Accounts Receivable f. Inventory g. Property, Plant and Equipment Refer to the tab labeled "Jim's Espresso Financials" for all of the problems on this worksheet. 21 12 13 74 75 76 77 76 Assume that Jim's pays out 90% of its net income. Use the percent of sales method to forecast: a. Stockholder's Equity b. Accounts Payable Last year's Amount added Forecasted amount a. Stockholder's Equity Percent of sales: Forecasted: b. Accounts Payable Problem 18-6 What is the amount of net new financing needed for Jim's? Income Statement: Balance Sheet Sales Assets Costs except Depr. EBITDA Cash and Equivalents Accounts Receivable Inventories Depreciation EBIT Interest Expense (net) Total Current Assets Property Plant and Equipment Total Assets Pretax Income Income Tax Net Income Liabilities and Equity Accounts Payable Debt Total Liabilities Stockholders' Equity Total Liabilities and Equity Net new financing: The net new financing needed for Jim's is actually negative... they have excess cash that they can use to repay debt. This is the difference between the new Total Assets and the new Total Liabilities and Equity

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