Question: Using the following ratio, income statement, and balance sheet info below prepare a projected income statement, balance sheet, and statement of cash flows for year 3.
Based on initial projections how much long term debt or equity is needed to fund the firms growth at projected increases in sales?
|
Income statement
|
year 1
|
year 2
|
|
net sales
|
6,044
|
19,889
|
|
cost of goods sold
|
14,048
|
6204
|
|
gross profit
|
7,893
|
13685
|
|
selling, general and admin expense
|
803
|
9221
|
|
depreciation and amortization expense
|
-308
|
773
|
|
interest expense
|
5,660
|
292
|
|
income before tax
|
1,691
|
3399
|
|
income tax expense
|
3,969
|
1222
|
|
net income
|
3,491
|
2177
|
|
outstanding shares
|
3,491
|
3481
|
|
Balance Sheet
|
year 1
|
year 2
|
|
cash
|
1934
|
1892
|
|
receivables
|
1882
|
1757
|
|
inventories
|
1055
|
1066
|
|
other current assets
|
2300
|
1905
|
|
total current assets
|
7171
|
6620
|
|
property, plants, and equipment
|
7105
|
6614
|
|
accumulated depreciation
|
2652
|
2446
|
|
net property, plant, and equipment
|
4453
|
4168
|
|
other noncurrent assets
|
10793
|
10046
|
|
total assets
|
22417
|
20834
|
|
accounts payable and accts liabilities
|
3679
|
3905
|
|
short term debt
|
3899
|
4816
|
|
income tax liabilities
|
851
|
600
|
|
total current liabilities
|
8429
|
9321
|
|
deferred income taxes
|
1403
|
1362
|
|
long term debt
|
1219
|
835
|
|
total noncurrent liabilities
|
2622
|
2197
|
|
common stock
|
873
|
870
|
|
capital surplus
|
3520
|
3196
|
|
retained earnings
|
20655
|
18543
|
|
treasury stock
|
13682
|
13293
|
|
shareholder's equity
|
11366
|
9316
|
|
total liabilities and equity
|
22417
|
20834
|
|
ratios
|
|
|
sales growth
|
1.02
|
|
gross profit margin
|
69.92
|
|
selling, general, and admin expenses
|
39.28
|
|
depreciation/prior year PPE gross
|
12.14
|
|
interest expense/prior year long term debt
|
5.45
|
|
income tax expense/pretax income
|
29.88
|
|
accts receive turnover
|
10.68
|
|
invent turnover
|
5.73
|
|
accts payable turnover
|
1.64
|
|
taxes payable/tax expense
|
50.33
|
|
total assets/stockholders equity
|
2.06
|
|
dividends per share
|
1.37
|
|
capital expenditures/sales
|
5.91
|