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Question 1) Assumptions Assumptions Units Sold Sale price (unit price) 2023 2,500 90.00 $ Cost of Goods Sold Variable costs (per unit sold) $ 50.00 SG&A Fixed cost Variable costs (% of revenue) $ 12,000 10% Depreciation (% of lagged fixed assets) Interest Expense (% of lagged NP and LTD) Relevant Tax Rate 10% 7% 20% Net Fixed Asset Turnover (Revenue/Net PP&E) 2.40 $ 21,404 45 Required Cash Days Sales in Inventory Days Sales in Receivables Days Payables Outstanding Dividend Payout Ratio 40 25 50% Operating Expenses Depreciation G&A (2,250) (20,400) (22,650) (3,600) (25,840) (29,440) (5,452) (29,700) (35,152) Total Opex Interest Expense (1,500) (2,520) Earnings before Tax 7,850 28,040 (2,777) 38,571 (8,100) Tax Expense (2,198) (7,851) Net Income 5,652 20,189 30,471 Question 1) Assumptions Assumptions Units Sold Sale price (unit price) 2023 2,500 90.00 $ Cost of Goods Sold Variable costs (per unit sold) $ 50.00 SG&A Fixed cost Variable costs (% of revenue) $ 12,000 10% Depreciation (% of lagged fixed assets) Interest Expense (% of lagged NP and LTD) Relevant Tax Rate 10% 7% 20% Net Fixed Asset Turnover (Revenue/Net PP&E) 2.40 $ 21,404 45 Required Cash Days Sales in Inventory Days Sales in Receivables Days Payables Outstanding Dividend Payout Ratio 40 25 50% Operating Expenses Depreciation G&A (2,250) (20,400) (22,650) (3,600) (25,840) (29,440) (5,452) (29,700) (35,152) Total Opex Interest Expense (1,500) (2,520) Earnings before Tax 7,850 28,040 (2,777) 38,571 (8,100) Tax Expense (2,198) (7,851) Net Income 5,652 20,189 30,471
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