Accounting and finance

Financial planning and forecasting

Anggota Kelompok:
1) Mohamad Rivaldi Mole 23/524038/NEK/27752
2) Iga Mawarni 23/511894/NEK/27564
3) Farah Chaisani 23/511769/NEK/27527
4) Nurul Hittah Annisa 23/511714/NEK/27488

9/6/2023

Kelompok 2
Universitas gadjah mada
6-8 8 LONG-TERM FINANCING NEEDED At year-end 2018, total assets for Arrington Inc.
were $1.8 million and accounts payable were $450,000. Sales, which in 2018 were $3.0 million,
are expected to increase by 25% in 2019. Total assets and accounts payable are proportional to
sales, and that relationship will be maintained; that is, they will grow at the same rate as sales.
Arrington typically uses no current liabilities other than accounts payable. Common stock
amounted to $500,000 in 2018, and retained earnings were $475,000. Arrington plans to sell new
common stock in the amount of $130,000. The firm’s profit margin on sales is 5%; 35% of
earnings will be retained.
a. What were Arrington’s total liabilities in 2018?
b. How much new long-term debt financing will be needed in 2019?
(Hint: AFN 2 New stock 5 New long-term debt.)
Liabilitas dan
Aset 2021 2021 2022
ekuitas
Total Aset $ 1.800.000 Account payable $ 450.000
Liabilitas jangka $ 825.000
Panjang
Total liabilitas $ 875.000
Retained $ 475.000
earnings
Common stock $ 500.000
Total ekuitas $ 975.000
Total liabilitas $ 1.800.000
dan ekuitas
Catatan tambahan:
Sales 2021 = $ 3.000.000
Sales 2022 = $ 3.750.000
ΔS = $ 750.000
Profit margin on sakes = 5%
New common stock = $ 130.000
a) Untuk mencari total liabilitas maka perlu di cari terlebih dahulu liabilitas jangka pendek
dan liabilitas jangka Panjang. Pada kasus ini liabiitas jangka panjangnya belum diketahui
sehingga perlu dicari terlebih dahulu:
Total liabilitas jangka Panjang = Total liabilitas dan ekuitas – total liabilitas jangka
pendek – total ekuitas
Total liabilitas jangka Panjang = 1.800.000 – 450.000 – (475.000 + 500.000)
Total liabilitas jangka Panjang = 375.000
 Kemudian dicari total liabilitas
Total liabilitas = liabilitas jangka Panjang + liabilitas jangka pendek
Total liabilitas = 375.000 + 450.000
Total liabilitas 2021 = $ 825.000
b) New long-term debt = Additional funds needed (AFN) – New stock
AFN = Required increase in assets – spontaneous increase in payables and accruals –
funds obtained as new retained earnings
Required increase in assets = (A0/S0) ΔS
spontaneous increase in payables and accruals = (L0/S0) ΔS
funds obtained as new retained earnings = M.S1 (1-payout)
AFN = ((1.800.000/3.000.000)750.000) – ((875.000/3.000.000)750.000) – ((0.05)
(3.750.000)(1-0.65))
AFN = 450.000 – 112.500 – 65.625
AFN = 271.875
Setelah AFN diketahui selanjutnya langsung saja kita mencari new long-term debt:
New long-term debt = AFN – new stock
New long-term debt = 271.875 – 130.000
New long-term debt = $ 141.875
6.9 SALES INCREASE Paladin Furnishings generated $4 million in sales during 2018, and its
year-end total assets were $3.2 million. Also, at year-end 2018, current liabilities were $500,000,
consisting of $200,000 of notes payable, $200,000 of accounts payable, and $100,000 of accrued
liabilities. Looking ahead to 2019, the company estimates that its assets must increase by $0.80
for every $1.00 increase in sales. Paladin’s profit margin is 3%, and its retention ratio is 50%.
How large of a sales increase can the company achieve without having to raise funds externally?
Diketahui:
Sales: $ 4.000.000
Total Asset: $ 3.200.000
Current liabilities: $ 500.000
Notes payable: $ 200.000
Account payable: $ 200.000
Accrual Liabilites: $ 100.000
Increase assets: $ 0.80 for every $ 1 increase in sales
Profit margin: 3%
Retention rate: 50%
Ditanya: How large of sales increase can the company achieve without having to raise funds
externally?
Jawab:

( ) ( )
¿ ¿
A L
AFN = 0 ∆ S− 0 ∆ S−M S1 RR
S0 S0

( ) ( )
¿ ¿
A L
AFN = 0 (S 1−S0 )− 0 (S 1−S0 )−M S 1 RR
S0 S0

( $$ 3.200
0=
.000
4.000 .000 ) (1S −$ 4.000 .000 )−(
$ 4.000 .000 )
$ 300.000
( S −$ 4.000 .000 )−3 % S 50 %
1 1

0=0 , 8 ( S 1−$ 4.000 .000 ) −0,075 ( S1−$ 4.000.000 )−0,015 S1

0=(0 ,8 S1−$ 3.200 .000)−(0,075 S 1−$ 300.000)−0,015 S1

0=0 , 71 S1−$ 2.900 .000

S1=4.084 .507

Maka:
 ∆ S=S 1−S0

∆ S=$ 4.084 .507−$ 4.000 .000

∆ S=$ 84.507
6. 11 REGRESSION AND INVENTORIES Charlie’s Cycles Inc. has $110 million in sales. The
company expects that its sales will increase 5% this year. Charlie’s CFO uses a simple linear
regression to forecast the company’s inventory level for a given level of projected sales. On the
basis of recent history, the estimated relationship between inventories and sales (in millions of
dollars) is as follows: Inventories 5 $9 1 0.0875 (Sales) Given the estimated sales forecast and
the estimated relationship between inventories and sales, what are your forecasts of the
company’s year-end inventory level and its inventory turnover ratio?
Diketahui:
Sales: $ 110.000.000
Sales increase : 5%
Cost of goods sales : 65% of sales
Inventories = $ 9 + 0,0875 (sales)
Ditanyakan:
a. Year-end inventory level
b. Inventory turn-over ratio
Jawab:
a. Year-end inventory level:

Salesincrease=$ 110.000.000 x 5 %
Salesincrease=$ 115.500.000

Inventory=$ 9+ 0,0875 ( sales )

Inventory=$ 9+ 0,0875 ( $ 115.500 .000 )
Inventory=$ 10.106 .259
b. Inventory turn-over ratio:
sales
inventory turn−¿ ratio=
inventory
$ 110.000 .000
inventory turn−¿ ratio=
$ 10.106 .259
inventory turn−¿ ratio=11, 4 x
6.12 EXCESS CAPACITY Earleton Manufacturing Company has $3 billion in sales and
$787,500,000 in fixed assets. Currently, the company’s fixed assets are operating at 80% of
capacity.
a. What level of sales could Earleton have obtained if it had been operating at full capacity?
b. What is Earleton’s target fixed assets/sales ratio?
c. If Earleton’s sales increase 30%, how large of an increase in fixed assets will the company
need to meet its target fixed assets/sales ratio?

Diketahui:
Sales: $ 3.000.000.000
Fixed Assets: $ 787.500.000
Fixed assets are operating at 80% of capacity
Ditanyakan:
a. Sales level if operating at full capacity
b. Target fixed assets/sales ratio
c. If sales increase 30%, how large of an increase in fixed assets will the company need to
meet its target fixed assets/sales ratio
Jawab:
a. Full capacity ratio
actual sales
full capacity ratio= assets operated ¿
Percentage of capacity ¿
$ 3.000 .000 .000
full capacity ratio=
80 %
full capacity ratio=$ 3.750 .000.000
b. Target fixed assets/ sales ratio
CIR Targeted ¿ assets=actual ¿ assets ¿
full capacity sales
$ 3.000.000 .000
CIR Targeted ¿ assets=
$ 3.750.000 .000
CIR Targeted ¿ assets=21 %
c. Fixed assets needed
increase sales=$ 3000.000 .000 x 30 %
increase sales=$ 3.900 .000.000

Required level of ¿ asset= (Target ¿ asset ¿¿ sales ) x Projected Sales

Required level of ¿ asset= ($ 3.000.000 .000
$ 3.750.000 .000 )x $ 3.900 .000 .000

Required level of ¿ asset=$ 819.000 .000

Difference∈¿ assets needed=$ 819.000 .000−$ 787.500 .000

Required level of ¿ asset=$ 31.500 .000