- Financial Planning Income Statement 7 000 000 Sales Operating Cost Earning Before Interest Tax 5 000 000 2 000 000 1 (34.48 KiB) Viewed 199 times
- Financial Planning Income Statement 7 000 000 Sales Operating Cost Earning Before Interest Tax 5 000 000 2 000 000 2 (27.39 KiB) Viewed 199 times
FINANCIAL PLANNING. INCOME STATEMENT $7,000,000 Sales. Operating Cost. Earning before interest tax. 5,000,000 2,000,000 Interest expense. 500,000 E.B.T. 1,500,000 Tax 40%. 600,000 NET INCOME. 900,000 BALANCE SHEET AS AT 2020 Current Assets; Cash. 200,000 Accounts receivables. 500,000 600,000 1,300,000 Inventory. Total Current Assets. Net Fixed Assets at full capacity. TOTAL ASSETS. 1.700.000 3,000,000 FINANCING COMPONENTS: Liabilities; Accounts Payable. 400,000 Notes Payable. 400,000 Accruals. 200,000 Non Current Liabilities:
600,000 Bonds payable. TOTAL LIABILITIES 1,600,000 EQUITY; Common stock 800,000 Retained earnings. 600,000 TOTAL EQUITY. TOTAL EQUITY AND LIABILITIES. 1,400,000 3,000,000 Retained ratio = Retained earnings/ Net income. If the project sales increment is 40% and retention ratio is 49%. What are the additional funds needed using the formula method and profomer method if; (a) Assets (fixed) are used at full capacity. (b) Fixed assets are used at 80% capacity