"> (Answered) The following is the financial statement of Executive Fruit Company for the year ended December 2014. - Tutorials Prime

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(Answered) The following is the financial statement of Executive Fruit Company for the year ended December 2014.


The following is the financial statement of Executive Fruit Company for the year ended December 2014.


Please see attached documentThe following is the financial statement of Executive Fruit Company for the year ended December 2014.   INCOME STATEMENT, 2014 (Figures in $ Thousands)   Revenue $ 7,500     Cost of goods sold   6,750         EBIT $ 750     Interest   150         Earnings before taxes $ 600     State and federal tax   240         Net income $ 360     Dividends   240         Additions to retained earnings $ 120         BALANCE SHEET (Year-End, 2014) (Figures in $ Thousands)   Assets            Net working capital $ 750        Fixed assets   3,000            Total assets $ 3,750         Liabilities and shareholders' equity            Long-term debt $ 1,500        Shareholders' equity   2,250            Total liabilities and shareholders' equity $ 3,750         The following are the first stage and second stage pro forma financial statements of Executive Fruit Company for the year ended December 2015.   First stage pro forma statements:   PRO FORMA INCOME STATEMENT, 2015 (Figures in $ Thousands)   Revenue $ 8,250     Cost of goods sold   7,425         EBIT $ 825     Interest   150         Earnings before taxes $ 675     State and federal tax   270         Net income $ 405     Dividends   270         Additions to retained earnings $ 135         PRO FORMA BALANCE SHEET (Year-End, 2015) (Figures in $ Thousands)   Assets            Net working capital $ 825        Fixed assets   3,300            Total assets $ 4,125         Liabilities and shareholders' equity            Long-term debt $ 1,500        Shareholders' equity   2,385            Total liabilities and shareholders' equity $ 3,885               Required external financing $ 240         Second stage pro forma balance sheet:   PRO FORMA BALANCE SHEET (Year-End, 2015) (Figures in $ Thousands)   Assets            Net working capital $ 825        Fixed assets   3,300            Total assets $ 4,125         Liabilities and shareholders' equity            Long-term debt $ 1,740        Shareholders' equity   2,385            Total liabilities and shareholders' equity $ 4,125         How would Executive Fruit’s financial model change if the dividend payout ratio were cut to 1/3? Use the revised model to generate a new financial plan for 2015 assuming that debt is the balancing item. What would be the required external financing? (Do not round intermediate calculations.)     Dividends fall by $ . Therefore, the requirement for external financing falls from $ to $ . On the other hand, shareholders' equity will be increased by $ .     The right-hand side of the balance sheet becomes (Do not round intermediate calculations. Enter your answers in thousands.):         Long-term debt $     Shareholders' equity       Total $    The following is the financial statement of Executive Fruit Company for the year ended

 

December 2014.

 

INCOME STATEMENT, 2014

 

(Figures in $ Thousands)

 

Revenue

 

$

 

7,500

 

Cost of

 

goods sold

 

6,750

 

EBIT

 

$

 

750

 

Interest

 

150

 

Earnings

 

before

 

taxes

 

$

 

600

 

State and

 

federal tax

 

240

 

Net

 

income

 

$

 

360

 

Dividends

 

240

 

Additions

 

to retained

 

earnings

 

$

 

120

 

BALANCE SHEET (Year-End, 2014)

 

(Figures in $ Thousands)

 

Assets

 

Net working

 

capital

 

$

 

750

 

Fixed assets

 

3,000

 

Total assets

 

$

 

3,750

 


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DATE ANSWERED

Jan 02, 2020

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