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Mini Case Study

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domitioo
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14 views6 pages

Mini Case Study

Uploaded by

domitioo
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
You are on page 1/ 6

Nbr of shares= Net income/ EPS

nbr of shares= 10000

new shares= 560

Current ratio= current assets/current liabilities


1.3= cash + acc rcvbl + inv / acc payable + notes payable
1.3= 96000/ 48000 + notes payable
notes payable= $ 25,846.15

Debt ratio= Total liabilities / total assets


55%= 73846.15 + LTD / 240000
LTD= 58153.85

Total added so far= 14000


AFN left= 1400

therefore common stock will increase by 1400

C.S and ADPIC= 41400

5% Add interest= 700


1st pass

Income st 2024 Income st 2025 Proforma

Sales $ 100,000.00 20% Sales


cost $ 50,000.00 cost
Other expenses $ 10,000.00 Other expenses
EBIT $ 40,000.00 EBIT
Interest expenses $ 10,000.00 Interest expenses
EBT $ 30,000.00 EBT
30% Taxes $ 9,000.00 30% Taxes
Net income $ 21,000.00 Net income

0.84 Dividents $ 8,400.00 1 Dividents

RE $ 12,600.00 RE

Balance sheet 2024 Balance sheet 2025 proforma

Cash $ 10,000.00 Cash


Acc Receivables $ 40,000.00 Acc Receivables
Inventory $ 30,000.00 Inventory
Fixes assets $ 120,000.00 Fixes assets

Total Assets $ 200,000.00 Total Assets

Accounts payable $ 40,000.00 Accounts payable


Note Payable $ 20,000.00 Note Payable
Long term debt $ 50,000.00 Long term debt

Total Liabilities $ 110,000.00 Total Liabilities

C.S and ADPIC $ 40,000.00 C.S and ADPIC


Retained earnings $ 50,000.00 Retained earnings

Total equity and Liab $ 200,000.00 Total equity and Liab

AFN

The outstanding finance required for this


increase in sales is $15,400
The outstanding finance required for this
increase in sales is $15,400
2nd pass

ncome st 2025 Proforma Income st 2025 Proforma

$ 120,000.00 20% Sales $ 120,000.00 we have additional 1


$ 60,000.00 cost $ 60,000.00 1400/ common stoc
$ 12,000.00 Other expenses $ 12,000.00 1400 / 2.5 = 560
$ 48,000.00 EBIT $ 48,000.00
$ 10,000.00 Interest expenses $ 10,700.00
$ 38,000.00 EBT $ 37,300.00
$ 11,400.00 30% Taxes $ 11,190.00
$ 26,600.00 Net income $ 26,110.00

$ 10,000.00 1 Dividents $ 10,560.00

$ 16,600.00 RE $ 15,550.00

ance sheet 2025 proforma Balance sheet 2025 proforma

$ 12,000.00 Cash $ 12,000.00


$ 48,000.00 Acc Receivables $ 48,000.00
$ 36,000.00 Inventory $ 36,000.00
$ 144,000.00 Fixes assets $ 144,000.00

$ 240,000.00 Total Assets $ 240,000.00

$ 48,000.00 Accounts payable $ 48,000.00


$ 20,000.00 Note Payable $ 25,846.15
$ 50,000.00 Long term debt $ 58,153.85

$ 118,000.00 Total Liabilities $ 132,000.00

$ 40,000.00 C.S and ADPIC $ 41,400.00


$ 66,600.00 Retained earnings $ 65,550.00

$ 224,600.00 Total equity and Liab $ 238,950.00

$ 15,400.00 AFN $ 1,050.00

nding finance required for this


sales is $15,400
nding finance required for this
sales is $15,400
we have additional 1400 common stock or

1400/ common stock price = nbr of new shares


1400 / 2.5 = 560

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