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  3. for the coming year (2022), shoremen, inc., expect

For the coming year (2022), Shoremen, Inc., expects sales of $369.1 million, operating costs (excluding...

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Finance

For the coming year (2022), Shoremen, Inc., expects sales of $369.1 million, operating costs (excluding depreciation) of $297.3 million, depreciation of $29.6 million, assets of $385.6 million, and a 25% federal and state combined tax rate. Shoremen currently finances 35% of its assets with debt and the remainder with common equity and expects this capital structure to remain constant into 2022. The firm estimates the interest rate on its debt will be 5.8%.

  1. Determine the percent of assets financed with common equity. Calculate the dollar value of debt an common equity financing Shoremen will use in 2022 under its current capital structure.
  2. Create Shoremens forecasted income statement for 2022.

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