Ganesh Corporation Financial Income Statement Sales Less: Cost of Goods Sold Gro
ID: 2562796 • Letter: G
Question
Ganesh Corporation Financial Income Statement Sales Less: Cost of Goods Sold Gross Profit Less: Selling and Administrative Expense Earnings Before Interest and Taxes Less: Interest Expense* In thousands 2012 $5,500 4.200 1,300 410 890 90 800 400 400 300 100 arnings Before Taxes Less: Taxes(50%) Net Income Dividend paid Retained Earnings 01. Assuming sales growth rate of 30% per year. project Income Statements and Balance Sheets for 2013.2014 & 2015. Also shor the EFN for each year Balance Sheet ASSETS 2011 2012 45 175 240 230 70 850 1,610 $50 160 275 950 Marketable Securities Accounts Receivable nventories nvestments Net Plant and Equipment Total Assets 1,710 LIAB&EQUITY; $85 10 Accounts Payable Notes Payable(NP) Accrued Expenses Bonds(LTD)* Common Equity** Tot. Liab & Equity EFN Tot. Liab & Equity with EFN nterest rate 9.89% on(NP-LTD-EFN) 110 65 35 800 600 1,610 900 700 1,710 1,710 Notes payable & Bonds don't vary with retained "Equity increases by earningsExplanation / Answer
Particulars
Amounts in $ in thousands
2,012
2,013
2,014
2,015
Sales
5,500.00
7,150.00
9,295.00
12,083.50
Less: cost of goods sold
4,200.00
5,460.00
7,098.00
9,227.40
Gross margin
1,300.00
1,690.00
2,197.00
2,856.10
Less: selling and admin expenses
410.00
533.00
692.90
900.77
EBIT
890.00
1,157.00
1,504.10
1,955.33
Less: interest expense
90.00
90.00
90.00
90.00
EBT
800.00
1,067.00
1,414.10
1,865.33
Less: taxes @ 50%
400.00
533.50
707.05
932.67
Net income
400.00
533.50
707.05
932.67
Dividend paid
300.00
400.13
530.29
699.50
Retained earnings
100.00
133.38
176.76
233.17
Balance Sheet:
Assets:
Cash
50.00
183.38
360.14
593.30
Marketable securities
160.00
160.00
160.00
160.00
Accounts receivable
220.00
220.00
220.00
220.00
Inventories
275.00
275.00
275.00
275.00
Investments
55.00
55.00
55.00
55.00
Net plant and equipment
950.00
950.00
950.00
950.00
Total Assets
1,710.00
1,843.38
2,020.14
2,253.30
Liabilities and equity:
Accounts payable
85.00
85.00
85.00
85.00
Notes payable
10.00
10.00
10.00
10.00
Accrued expenses
15.00
15.00
15.00
15.00
Bonds
900.00
900.00
900.00
900.00
common equity
700.00
833.38
1,010.14
1,243.30
Total liabilities and equity
1,710.00
1,843.38
2,020.14
2,253.30
Assumptions:
For year 2013, the cash is $(50+533.50-400.13) which is opening balance of the previous year +net income of the current year-dividend paid.
Similarly, for year 2013, the common equity balance is $(700+133.38) which is opening balance of common equity+ retained earnings amount.
Particulars
Amounts in $ in thousands
2,012
2,013
2,014
2,015
Sales
5,500.00
7,150.00
9,295.00
12,083.50
Less: cost of goods sold
4,200.00
5,460.00
7,098.00
9,227.40
Gross margin
1,300.00
1,690.00
2,197.00
2,856.10
Less: selling and admin expenses
410.00
533.00
692.90
900.77
EBIT
890.00
1,157.00
1,504.10
1,955.33
Less: interest expense
90.00
90.00
90.00
90.00
EBT
800.00
1,067.00
1,414.10
1,865.33
Less: taxes @ 50%
400.00
533.50
707.05
932.67
Net income
400.00
533.50
707.05
932.67
Dividend paid
300.00
400.13
530.29
699.50
Retained earnings
100.00
133.38
176.76
233.17
Balance Sheet:
Assets:
Cash
50.00
183.38
360.14
593.30
Marketable securities
160.00
160.00
160.00
160.00
Accounts receivable
220.00
220.00
220.00
220.00
Inventories
275.00
275.00
275.00
275.00
Investments
55.00
55.00
55.00
55.00
Net plant and equipment
950.00
950.00
950.00
950.00
Total Assets
1,710.00
1,843.38
2,020.14
2,253.30
Liabilities and equity:
Accounts payable
85.00
85.00
85.00
85.00
Notes payable
10.00
10.00
10.00
10.00
Accrued expenses
15.00
15.00
15.00
15.00
Bonds
900.00
900.00
900.00
900.00
common equity
700.00
833.38
1,010.14
1,243.30
Total liabilities and equity
1,710.00
1,843.38
2,020.14
2,253.30
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