Ma & Pa Kettle\u2019s Chili Company have started up a business selling their new chili recipe and they want you to help them with next year\u2019s sales forecast. Using the worksheet below, complete Ma & Pa\u2019s financial forecast and answer the questions which follow.<\/p>\n
To begin with, Ma & Pa are sure sales will grow 50% next year. Assume that is true. Then assume that COGS, Current Assets, and Current Liabilities all vary directly with Sales. Assume that fixed expenses will remain unchanged and that $1,000 worth of new Fixed Assets will be obtained next year. Lastly, the current dividend policy will be continued next year.<\/p>\n
Ma & Pa Kettle Chili Company, Inc.
Financial Status and Forecast for 2009<\/p>\n
2008 Est for 2009<\/p>\n
Sales $10,000 ________
COGS 4,000 ________
Gross Profit 6,000 ________
Fixed Expenses 3,000 ________
Before Tax Profit 3,000 ________
Tax @ 33.3333% 1,000 ________
Net Profit $2,000 ________<\/p>\n
Dividends $0 ________<\/p>\n
Current Assets $25,000 ________
Net Fixed Assets 15,000 ________
Total Assets $40,000 ________<\/p>\n
Current Liabilities $17,000 ________
Long term debt 3,000 ________
Common Stock 7,000 ________
Retained Earnings 13,000 ________
Total Liabs & Eq $40,000 ________<\/p>\n
Will Ma & Pa be able to get by without any External Funding Required in 2009? .<\/p>\n
If not, how much will they need? $________.<\/p>\n","protected":false},"excerpt":{"rendered":"
Ma & Pa Kettle\u2019s Chili Company have started up a business selling their new chili recipe and they want you to help them with next year\u2019s sales forecast. Using the worksheet below, complete Ma & Pa\u2019s financial forecast and answer Read More …<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-155785","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/155785","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/comments?post=155785"}],"version-history":[{"count":0,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/155785\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/media?parent=155785"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/categories?post=155785"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/tags?post=155785"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}