The most recent financial statements for Fleury Inc., follow. Interest expense w
ID: 2778338 • Letter: T
Question
The most recent financial statements for Fleury Inc., follow. Interest expense will remain constant; the tax rate and the dividend payout rate will also remain constant. Costs, other expenses, current assets, fixed assets and accounts payable increase spontaneously with sales.
Complete the pro forma income statements below. (Input all amounts as positive values. Do not round intermediate calculations.)
The most recent financial statements for Fleury Inc., follow. Interest expense will remain constant; the tax rate and the dividend payout rate will also remain constant. Costs, other expenses, current assets, fixed assets and accounts payable increase spontaneously with sales.
Explanation / Answer
Answer:Income Statement:
Particulars 15% Sales Growth 25% Sales Growth 30% Sales Growth Sales 864800 940000 977600 Costs 675050 733750 763100 Other expenses 26450 29900 29900 EBIT 163300 176350 184600 Interest 12000 12000 12000 Taxable income 151300 164350 172600 taxes 45390 49305 51780 Net income 105910 115045 120820 Dividends 31773 34513.5 36246 Add to RE 74137 80531.5 84574Related Questions
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