Chapter 4

Input boxes in tan Output boxes in yellow Given data in blue Calculations in red Answers in green
NOTE: Some functions used in these spreadsheets may require that the "Analysis ToolPak" or "Solver Add-in" be installed in Excel. To install these, click on "Tools|Add-Ins" and select "Analysis ToolPak" and "Solver Add-In."

sis ToolPak"

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Question 5 Input area:

Sales Costs Current assets Fixed assets Current liabilities Long-term debt Equity Sales increase Payout ratio Tax rate

Output area:

Pro forma income statement Sales $ Costs Taxable income $ Taxes Net income $ Dividends $ Add. To RE $ -

Pro forma balance sheet Current assets $ Current liabilities Fixed assets Long-term debt Equity Total $ Total

External financing = Total assets - Total debt & equity =

Chapter 4
Question 6 Input area:

Sales Costs Current assets Fixed assets Debt Equity Payout ratio Tax rate

Output area:

Sales Costs Taxable income Taxes Net income Dividends Add. To RE

Income statement $ $ $ $

Balance sheet Current assets Fixed assets Total

Return on assets = Net income / Total assets = #DIV/0! Internal growth rate = (Return on assets X b) / (1 - Return on assets X b) =

Balance sheet $ $ -

Debt Equity Total

b=

eturn on assets X b) =

1.0 #DIV/0!

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Question 21 Input area:

Total debt ratio Payout ratio Total asset turnover Profit margin

Output area:

Debt/equity Return on assets Plowback ratio Return on equity Sustainable growth rate

#DIV/0! 0.00% 1 #DIV/0! #DIV/0!

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Question 23 Input area:

Beginning equity Ending TA Net income Dividends

Output area:

Ending equity Plowback ratio ROE (beg. equity) ROE (ending equity) Exact SGR ROE x b (using beg. Equity for ROE) ROE x b (using end Equity for ROE)

$ #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!

#DIV/0!

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Questions 26-27 Input area:

For problems 26 and 27, change the percent sales growth rate in the input area below. Sales Costs Other expenses Interest expense Cash Accounts receivable Inventory Net plant and equipment Accounts payable Notes payable Long-term debt Common stock Retained earnings 2006 Net income Dividends Add. to retained earnings Sales increase Operating capacity Tax rate

Output area:

Dividend payout ratio =

#DIV/0! Assets Current assets Cash Accounts receivable Inventory Total Fixed assets Net plant and equipment Liabilities and owners' equity Current liabilities Accounts payable $ Notes payable Total $ Long-term debt Owners' equity Common stock and paid-in surplus Retained earnings Total Total liabilities and owners' equity

2007 Pro Forma Income Statement Sales $ Costs Other expenses EBIT $ Interest expense Taxable income $ Taxes Net income $ Dividends #DIV/0! Add. To RE #DIV/0!

#DIV/0! #DIV/0! #DIV/0!

Total assets External financing = Total assets - Total debt & equity = #DIV/0!

#25 and #26 Full capacity sales Fixed assets required at full capacity Total fixed assets External financing needed #DIV/0!

#DIV/0! #DIV/0! #DIV/0!

#27 2006 Debt/equity ratio New total debt External financing needed

#DIV/0! #DIV/0! #DIV/0!