the mangement of croker corp is doing a quick forcast of 20x9 using the mofided
ID: 2669146 • Letter: T
Question
the mangement of croker corp is doing a quick forcast of 20x9 using the mofided percentage of sales method in prepration for more detailed planning exercise later in the monh the estimate is to assume a 10% growth in sales. all other line items are to be assumed to grow at the same rate except for fixed assetswhich is projected to increase by 88,000 due to an expansion program already underway. approximate financial statements for the current year 20x8 and a planning worksheet are shown below the firm pays 9% interesty on all of its debit assume the tax rate is a flat 25% there are no plans for dividends or the sale of additional stock next year make a forcast of cokers complete income statement and balance sheet work to the nearest thousand dollars. income statement20x8 20x9
revenue 642
cosg 289
------------------------------------------
gross margin 353
expenses 240
------------
ebit 113
interest (9%) 33
------------
ebt 80
inc tax (25%) 25
------------
eat 55
croker corp
current and projected balance sheets
assets liab & equity
20x8 20x9 20x8 20x9
c/a 198 c/l 87
f/a 552 debt 325
----------- --------- equity 338
total 750 ------------
total 750 -------------
Explanation / Answer
20X8
20X9
revenue
642
706
cogs
289
318
Gross margin
353
388
expenses
240
264
EBIt
113
124
Interest(9%
33
30
EBIT
80
94
TAX(25%)
25
24
EAT
55
70
ASSEST
LIABILITIES
20X8
20X9
20X8
20X9
C/A
198
218
c/l
87
96
F/A
552
640
debt
325
354
750
858
equity
338
408
70
858
20X8
20X9
revenue
642
706
cogs
289
318
Gross margin
353
388
expenses
240
264
EBIt
113
124
Interest(9%
33
30
EBIT
80
94
TAX(25%)
25
24
EAT
55
70
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