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Finc5000 Homework Assignment for Week 8:

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FINC5000 Homework Assignment for Week 8:
Click Link Below To Buy: http://hwcampus.com/shop/finc5000-homework-assignment-for-week-8/ For Week 8, please turn in the answers to the following questions:
1. The FINC 5000 Associates Corporation (FAC) has begun selling a new product and they want you to help them with next year’s pro forma financial statements. Using the worksheet below, complete the company’s forecast.
Assumptions:
To begin with, FAC is sure sales will grow 20% next year. Assume that is true. Then assume that COGS, Current Assets, and Current Liabilities all vary directly with Sales (that means if sales grows a certain percentage, then the account in question will grow by that same percentage). Assume that fixed expenses will remain unchanged and that $1500 worth of new Fixed Assets will be obtained next year. Lastly, the current dividend policy will be continued next year.
FINC 5000 Associates Corporation
Financial Forecast
Estimated
This year for next year
Sales $10,000 ________
COGS 4,000 ________
Gross Profit 6,000 ________
Fixed Expenses 3,000 ________
Before Tax Profit 3,000 ________
Tax @ 33.3333% 1,000 ________
Net Profit $2,000 ________
Dividends $0 ________
Current Assets $25,000 ________
Net Fixed Assets 15,000 ________
Total Assets $40,000 ________
Current Liabilities $17,000 ________
Long term debt 3,000 ________
Common Stock 7,000 ________
Retained Earnings 13,000 ________
Total Liabs & Eq $40,000 ________
(AFN) = ________
2. The Wonders Corporation (WC) has begun selling a new product and they want you to help them determine if they need additional funding (AFN) next year. Using the AFN formula method, calculate WWC’s AFN for next year (if any).
The company’s latest financial statements are shown below. Sales growth next year is forecast to be 20% and the net profit margin is expected to remain the same as it

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Finc5000 Homework Assignment for Week 8:

...FINC5000 Homework Assignment for Week 8: Click Link Below To Buy: http://hwcampus.com/shop/finc5000-homework-assignment-for-week-8/ For Week 8, please turn in the answers to the following questions: 1. The FINC 5000 Associates Corporation (FAC) has begun selling a new product and they want you to help them with next year’s pro forma financial statements. Using the worksheet below, complete the company’s forecast. Assumptions: To begin with, FAC is sure sales will grow 20% next year. Assume that is true. Then assume that COGS, Current Assets, and Current Liabilities all vary directly with Sales (that means if sales grows a certain percentage, then the account in question will grow by that same percentage). Assume that fixed expenses will remain unchanged and that $1500 worth of new Fixed Assets will be obtained next year. Lastly, the current dividend policy will be continued next year. FINC 5000 Associates Corporation Financial Forecast Estimated This year for next year Sales $10,000 ________ COGS 4,000 ________ Gross Profit 6,000 ________ Fixed Expenses 3,000 ________ Before Tax Profit 3,000 ________ Tax @ 33.3333% 1,000 ________ Net Profit $2,000 ________ Dividends $0 ________ Current Assets $25,000 ________ Net Fixed Assets 15,000 ________ Total Assets $40,000 ________ Current Liabilities $17,000 ________ Long term debt 3,000 ________ Common Stock 7,000 ________ Retained Earnings 13,000 ________ Total Liabs & Eq $40,000 ________ (AFN) = ________ ...

Words: 417 - Pages: 2