Use the following Income Statement and Balance Sheet of firm X to answers Questions (1) & (2)
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Income Statement, 2016
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Balance Sheet, 2017
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Sales
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4,005,000
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Assets
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|
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Costs except Depr.
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-2,995,000
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Cash and Equivalents
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496,000
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|
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EBITDA
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1,010,000
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Accounts Receivable
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660,000
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Depreciation
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-9,900
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Inventories
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20,000
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EBIT
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1,000,100
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Total Current Assets
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1,176,000
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Interest Expense (net)
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-40,500
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Property Plant & Equipment
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1,190,000
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Pretax Income
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959,600
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Total Assets
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2,366,000
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Income Tax
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-335,860
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Liabilities &Equity
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|
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Net Income
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623,740
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Accounts Payable
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600,000
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Debt
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650,000
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Total Liabilities
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1,250,000
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|
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Stockholders' Equity
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1,116,000
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Total Liabilities and Equity
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2,366,000
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Sales in 2017 are expected to grow at a rate of 12.5% with respect to the values of 2016. Assume the company pays out 65% of its net income.
QUESTION 1
1. Use the percent sales method to forecast the value of next year's stockholder's equity for firm X.
QUESTION 2
2. Use the percent sales to estimate the firm's net new financing for firm X.