For Problems 4-7, use the following income statement and balance sheet for Jim's Espresso: Balance...
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Finance
For Problems 4-7, use the following income statement and balance sheet for Jim's Espresso: Balance Sheet Income Statement Sales Costs Except Depreciation EBITDA Depreciation EBIT Interest Expense (net) Pretax Income Income Tax Net Income 200.000 (100,000) 100.000 (6,000) 94.000 (400) 93,600 (32,760) 60,840 Assets Cash and Equivalents Accounts Receivable Inventories Total Current Assets Property, Plant, and Equipment Total Assets 15,000 2,000 4,000 21,000 10,000 31,000 Liabilities and Equity Accounts Payable Debt Total Liabilities Stockholders' Equity Total Liabilities and Equity 1,500 4.000 5,500 25,500 31.000 Item % of Sales This year Next year Costs 50% 100,000 110,000 Depreciation 3 6,000 6,600 Net income 30.42% 60.840 66,924 Cash 7.5% 15,000 16.500 Accounts Receivable 10% 2,000 2,200 Inventory 2% 4.000 4,400 PP&E 5% 10,000 11,000 5. Assume that Jim's pays out 90% of its net income. Use the percent of sales method to forecast (see MyFinanceLab for the data in Excel format): a. Stockholders' equity b. Accounts payable 6. What is the amount of net new financing needed for Jim's (see MyFinanceLab for the data in Excel format)
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