Carissa Windya Warastri – 464848

Exercise 9-4A
The Lyon Corporation is a merchandising company. Prepare a short-term cash forecast for July
of Year 6 following the format of Exhibit 9A.4. Selected financial data from Lyon Corporation as
of July 1 of Year 6 are reproduced below ($ thousands):
Cash, July 1, Year 6 . . . . . . . . . . . . . . . . . . . . . . . . $ 20
Accounts receivable, July 1, Year 6 . . . . . . . . . . . . . 20
Forecasted sales for July. . . . . . . . . . . . . . . . . . . . . 150
Forecasted accounts receivable, July 31, Year 6 . . 21
Inventory, July 1, Year 6. . . . . . . . . . . . . . . . . . . . . . 25
Desired inventory, July 31, Year 6 . . . . . . . . . . . . . .15
Depreciation expense for July . . . . . . . . . . . . . . . . . 4
Miscellaneous outlays for July. . . . . . . . . . . . . . . . . 11
Minimum cash balance desired . . . . . . . . . . . . . . . .30
Accounts payable, July 1, Year 6 . . . . . . . . . . . . . . . 18
Additional Information :
1. Gross profit equals 20% of cost of goods sold.
2. Lyon purchases all inventory on the second day of the month and receives it the following
week.
3. Lyon pays 75% of payables within the month of purchase and the balance in the following
month.
4. Lyons pays all remaining expenses in cash.

Jawaban :
 Purchase = Ending inventory + COGS – Beg. Inventory
= $ 15 + 125 – 25
= $ 115
Lyon Corp.
Cash Forecast
July, Year 6
Beginning Cash Bal. $ 20
Cash Collection :
Beginning account receivable $ 20
Sales for month 150
$ 170
Less : Ending A/R (21) 149
Total Cash Available $ 169
Less Cash Disbursements :
Beginning account payable $ 18
 Purchase 115
$ 133
Ending A/P (25% purchase) (29) (104)
Miscellaneous outlays (11)
Cash Balance $ 54
Minimum cash balance desired 30
Excess Cash $ 24

Problem 9-2
Required:
a. Use the following ratios to prepare a projected income statement, balance sheet, and
statement of cash flows for Year 3.
b. Based on your initial projections, how much external financing (long-term debt and/or
stockholders’ equity) will Best Buy need to fund its growth at projected increases in
sales ?

Jawaban :
a. Ratio, Income statement, balance sheet, dan statement of cash flows for Year 3 :
Best Buy Year 3 Year 2 Year 1
Income Statement
Net Sales $ 18.800 $ 15.326 $ 12.494
COGS 15.048 12.267 10.101
Gross Profit $ 3.752 $ 3.059 $ 2.393
Selling, general & adm. expense 2.761 2.251 1.728
Depreciation & amortization expense 304 167 103
Income before tax $ 688 $ 641 $ 562
Income tax expense 263 245 215
Net Income $ 425 $ 396 $ 347
Outstanding shares 208 208 200

Ratio
Sales growth 22,67%
Gross Profit Margin 19,96%
Selling, general & adm. Expense/Sales 14,69%
Depreciation 15,28%
Tax 38,22%
Balance Sheet Year 3 Year 2 Year 1
Cash $ 196 $ 746 $ 751
Account receivables 384 313 262
Inventories 2.168 1.767 1.184
Other 102 102 41
Total Current Asset $ 2.850 $ 2.928 $ 2.238

Property, plant & equipment $ 3.249 $ 1.987 $ 1.093

Accumulated depreciation 847 543 395
Net property & equipment $ 2.403 $ 1.444 $ 698
Other assets 466 466 59
Total assets $ 5.719 $ 4.838 $ 2.995

Accounts payable & accrued liabilities $ 3.034 $ 2.473 $ 1.704

Short-term debt & cmltd 114 114 16
Income taxes 136 127 65
Total current liabilities $ 3.284 $ 2.714 $ 1.785

Long term liabilities $ 122 $ 122 $ 100

Long term debt 67 181 15
Total long-term liabilities $ 189 $ 303 $ 115

Common stock $ 20 $ 20 $ 20
Capital surplus 576 576 247
Retained Earnings 1.650 1.225 828
Shareholder equity $ 2.246 $ 1.821 $ 1.095
Total liabilities & net worth $ 5.719 $ 4.838 $ 2.995

Ratio
A/R turnover 48,96 % 48,96% 47,69%
Inventories turnover 6,94% 6,94 % 8,53%
A/P turnover 4,96% 4,96% 5,93%
Tax Payable / Tax Exp. 51,84% 51,84% 30,23%
FLEV 2,55% 2,66% 2,74%
Dividen per share $ 0 $ 0 $ 0

Capital Expenditure $ 1.262 $ 1.029 $ 416

Capital Expenditure/Sales 6,71% 6,71% 3,33%

Statement of Cash Flows Estimate

 Year 3
Net income $ 425
Depreciation 304
Accounts receivable -71
Inventories -401
Accounts payable 561
Income taxes 9
Net cash flow from operations $ 827

Capital Expenditure -1,262

Net cash flow from investing activities -1,262

Long term debt $ -114

Additional paid in capital 0
Dividends 0
Net cash flow from financing activities $ -114

Net change in cash $ -550

Beginning cash 746
Ending cash $ 196

b. Best Buy membutuhkan $550 dari pembiayaan eksternal untuk menghasilkan saldo kas $750.
Best Buy harus mengalokasikan pembiayaan eksternal ini antara hutang dan ekuitas untuk
tetap menjaga tingkat leverage keuangan yang digunakan oleh Best Buy.