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Use the 2009 financial forecast and 2010 information provided below for R&E, ans

ID: 2700377 • Letter: U

Question


Use the 2009 financial forecast and 2010 information provided below for R&E, answer the following questions"

Income Statement

2009

Comments

Net sales

$25,766.00

25% Increase

Cost of goods sold

$22,159.00

86% of sales

Gross Profit

$ 3,607.00

Expenses:

    General, selling, and administrative expenses

$ 3,092.00

12% sales

     Net interest expense

$      90.00

Initially constant

EBIT

$    425.00

Tax

$    191.00

45% Tax rate

Earnings after tax

$    234.00

R&E Supplies Assumptions for 2010

Growth Rate in net sales

30%

Cost of Goods Sold

86%

Gen, Selling and Admin Expenses

11%

Long-term debt

$560

Current portion long-term debt

$100

Interest Rate

10%

Tax Rate

45%

Dividend/earnings after tax

50%

Current assets/net sales

29%

Net fixed assets

$270

Current liabilities/net sales

14.40%

Income Statement

2009

Comments

Net sales

$25,766.00

25% Increase

Cost of goods sold

$22,159.00

86% of sales

Gross Profit

$ 3,607.00

Expenses:

    General, selling, and administrative expenses

$ 3,092.00

12% sales

     Net interest expense

$      90.00

Initially constant

EBIT

$    425.00

Tax

$    191.00

45% Tax rate

Earnings after tax

$    234.00

R&E Supplies Assumptions for 2010

Growth Rate in net sales

30%

Cost of Goods Sold

86%

Gen, Selling and Admin Expenses

11%

Long-term debt

$560

Current portion long-term debt

$100

Interest Rate

10%

Tax Rate

45%

Dividend/earnings after tax

50%

Current assets/net sales

29%

Net fixed assets

$270

Current liabilities/net sales

14.40%

Explanation / Answer

question incomplete sir please post again