Fill in the missing blanks ABC Company 2011 2012 2013 2014 2015 2016 2017 Actual

ID: 2766554 • Letter: F

Question

Fill in the missing blanks

ABC Company 2011 2012 2013 2014 2015 2016 2017 Actual Actual Actual Actual Forecast Forecast Forecast Key Assumptions Sales Growth Rate 16.0% 13.0% 11.0% Tax Rate 40.0% 40.0% 40.0% Dividend Payout Rate 35.0% 35.0% 35.0% Income Statement (Mil.$) Sales $73.84 $93.28 $115.93 $138.84 Cost of Goods Sold $41.83 $58.39 $75.49 $89.83 Gross Margin $32.01 $34.89 $40.44 $49.01 Selling, Gen & Adm Expenses $6.58 $7.28 $8.56 $10.21 Depreciation $5.91 $6.37 $7.31 $9.86 EBIT $19.52 $21.24 $24.57 $28.94 Interest Expense $4.76 $5.23 $6.69 $8.88 Taxes $6.21 $6.96 $7.52 $7.60 Net Income $8.55 $9.05 $10.36 $12.46 Shares Outstanding (Millions) 39.60 40.36 44.93 53.91 Earnings Per Share $0.22 $0.22 $0.23 $0.23 Market Price / Share $6.21 $6.57 $6.68 $6.71 Allocation of Net Income: Dividends $2.90 $3.17 $3.63 $4.36 Addition to Retained Earnings $5.88 $6.73 $8.10 Balance Sheet (Mil.$) Assets Current Assets Cash & Equivalents $4.27 $6.38 $7.62 $8.83 Receivables $20.58 $24.39 $28.77 $34.11 Inventories $26.73 $30.45 $36.75 $43.27 Total Current Assets $51.58 $61.22 $73.14 $86.21 Property, Plant & Equip. (PPE) $331.64 $423.92 $503.87 $613.28 Accumulated Depreciation $98.72 $105.09 $112.40 $122.26 Net PPE $232.92 $318.83 $391.47 $491.02 Total Assets $284.50 $380.05 $464.61 $577.23 Liabilities and Shareholders' Equity Current Liabilities Accounts Payable $31.83 $63.43 $83.84 $94.41 Short-term Debt $30.86 $43.03 $64.85 $79.49 Total Current Liabilities $62.69 $106.46 $148.69 $173.90 Long-term Debt $40.00 $45.90 $51.50 $70.81 Total Liabilities $102.69 $152.36 $200.19 $244.71 Shareholders' Equity Paid-in Capital $90.00 $130.00 $160.00 $220.00 Retained Earnings $91.81 $97.69 $104.42 $112.52 Total Shareholders' Equity $181.81 $227.69 $264.42 $332.52 Total Liab. & Share. Equity $284.50 $380.05 $464.61 $577.23 TA - (TL&TE):

Explanation / Answer

Calculation (2011)

2011

Calculation (2012)

2012

Calculation (2013)

2013

Calculation (2014)

2014

Sales growth rate

($93.28-$73.84)*100/$73.84

26.32719

($115.93-$93.28)*100/$93.28

24.28173

($138.84-$115.93)*100/$115.93

19.76193

Tax rate

$6.21*100/($19.52+$4.76)

25.57661

$6.96*100/($21.24+$5.23)

26.29392

$7.52*100/($24.57+$6.69)

24.0563

$7.60*100/($28.94+$8.88)

20.09519

Dividend payout ration

($2.90/39.60)/$0.22

0.332874

($3.17/40.36)/$0.22

0.357014

($3.63/44.93)/$0.23

0.351271

($4.36/53.91)/$0.23

0.351633

Dividend payout share=Dividend per share/earning per share