Question

2018 (in millions) Sales $ 12.00 Operating Costs 4.00 EBITDA 8.00 Depreciation 1.50 Earmings Before Interest and Taxes (EBIT) 6.50 Interest 1.50 Earnings Before Taxes (EBT) 5.00 Taxes 2.00 Net Income 3.00 Dividends $ 1.80 Addition to Retained Earnings $ 1.20 Projected 2019 (in millions) Calculate the values for the 2019 projected (proforma) income statement using the following assumptions (I've provided the 2019 income statement framework to the right of 2018 income statement values): 1) 2019 Sales are expected to increase by 25% over 2018 sales levels, 2) 2019 operating costs will be 20% of projected sales, 3) 2019 Interest expense will increase by 30% over 2018 interest expense, and 4) the 2019 tax rate, depreciation amount, and the dividend payout ratio will remain the same as in 2018. Enter your answers as numbers with 3 decimal places of precision (1.e. 1.234). Keep in values in millions. Enter the values for 2019 Projected sales - Operating costs Interest expense Tax expense Net income Dividends

          2018
(in millions)
Sales
$ 12.00
Operating Costs
4.00
EBITDA
8.00
Depreciation
1.50
Earmings Before Interest and Taxes (EBIT)
6.50
Interest
1.50
Earnings Before Taxes (EBT)
5.00
Taxes
2.00
Net Income
3.00
Dividends
$ 1.80
Addition to Retained Earnings
$ 1.20
Projected 2019
(in millions)
Calculate the values for the 2019 projected (proforma) income statement using the following assumptions (I've provided the 2019 income statement framework to the right of 2018 income statement values):
1) 2019 Sales are expected to increase by 25% over 2018 sales levels,
2) 2019 operating costs will be 20% of projected sales,
3) 2019 Interest expense will increase by 30% over 2018 interest expense, and
4) the 2019 tax rate, depreciation amount, and the dividend payout ratio will remain the same as in 2018.
Enter your answers as numbers with 3 decimal places of precision (1.e. 1.234). Keep in values in millions.
Enter the values for 2019
Projected sales -
Operating costs
Interest expense
Tax expense
Net income
Dividends

2018
(in millions)
Sales
12.00
Operating Costs
4.00
EBITDA
8.00
Depreciation
1.50
Earmings Before Interest and Taxes (EBIT)
6.50
Interest
1.50
Earnings Before Taxes (EBT)
5.00
Taxes
2.00
Net Income
3.00
Dividends 1.80
Addition to Retained Earnings
1.20
Projected 2019
(in millions)
Calculate the values for the 2019 projected (proforma) income statement using the following assumptions (I've provided the 2019 income statement framework to the right of 2018 income statement values):
1) 2019 Sales are expected to increase by 25% over 2018 sales levels,
2) 2019 operating costs will be 20% of projected sales,
3) 2019 Interest expense will increase by 30% over 2018 interest expense, and
4) the 2019 tax rate, depreciation amount, and the dividend payout ratio will remain the same as in 2018.
Enter your answers as numbers with 3 decimal places of precision (1.e. 1.234). Keep in values in millions.
Enter the values for 2019
Projected sales -
Operating costs
Interest expense
Tax expense
Net income
Dividends

Added by Leah M.

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