Fill in order details

  • Submit your instructions
    to writers for free!

Chat with the writer

  • Chat with preferred expert writers
  • Request a preview of your paper
    from them for free

Editing

  • Project edited by the quality evaluation department

Download Your Completed Project

  • Download the completed project from your account or have it sent to your email address

Calculate the internal growth rate (IGR) and sustainable growth rate (SGR) for S&S Air Calculate the external financing needed (EFN) assuming 12% growth rate and full capacity operation. Use Excel to create pro-forma financial reports. Assume that the company, currently operating at full capacity, cannot simply increase fixed assets by 12%. Instead, the firm must buy a new line of business at a cost of 5 million dollars. Calculate the external financing needed (EFN) and capacity utilization for next year. Use Excel to create pro-forma financial statements and clearly explain your thinking and calculations. 

Homework 2

Chapter 4 mini-case – S&S Air long term financial planning

Note: data is based on the S&S Air financial statements

 

S&S Air, INC.

2009 Income Statement

Sales   $30,499,420
Cost of goods sold   $22,224,580
Other expenses   $3,867,500
Depreciation   $1,366,680
EBIT   $3,040,660
Interest   $478,240
Taxable income   $2,562,420
Taxes (40%)   $1,024,968
Net income   $1,537,452
Dividends $560,000  
Add to retained earnings $977,452  

  

 S&S Air, INC.

2009 Balance Sheet

Assets

 

Liabilities and Equity

Current assets     Current liabilities  
Cash $441,000   Accounts payable $889,000
Accounts receivable $708,400   Notes payable $2,030,000
Inventory $1,037,120   Total current liabilities $2,919,000
Total current assets $2,186,520      
      Long term debt $5,320,000
Fixed assets        
Net plant and equipment $16,122,400   Shareholder equity  
      Common stock $350,000
      Retained earnings $9,719,920
      Total equity $10,069,920
         
Total assets $18,308,920   Total liabilities and equity $18,308,920

  1. Calculate the internal growth rate (IGR) and sustainable growth rate (SGR) for S&S Air
  2. Calculate the external financing needed (EFN) assuming 12% growth rate and full capacity operation. Use Excel to create pro-forma financial reports.
  3. Assume that the company, currently operating at full capacity, cannot simply increase fixed assets by 12%. Instead, the firm must buy a new line of business at a cost of 5 million dollars. Calculate the external financing needed (EFN) and capacity utilization for next year. Use Excel to create pro-forma financial statements and clearly explain your thinking and calculations.

Place your order now on a similar paper and get best quality work written by our expert level writers. “A” guaranteed.assignment writing help

What our customers say
_____

Ishita M.Ishita M.
Great Job! Thank you so much for your work. You got it done faster than I imagined and everything is perfect. Will definitely be using you again!
Megan J.Megan J.
"As a wife, mother, and full-time student, I was struggling to try to go back to school and take care of my responsibilities. Sometimes you just need a little help, and I appreciate all the help I have gotten from Academic Research Bureau. My papers are on-time and the writers are easy to work with. Thanks for the support!"
Rajab M.Rajab M.
Universitywritingservices.com has saved me a lot of time. I was tired of taking the same classes many times over again. As an ESL student, my professors were taking points off of my assignments for my grammar mistakes. It made it very hard to feel encouraged to continue with my studies. Thankful for having found an answer for better grades."
Frank N.Frank N.
As a working student, I just really don't have the time to write paper after paper and complete assignment after assignment. Working full-time and going to school was nearly impossible until I was able to feel comfortable with the writers on this site. They make me feel secure enough to trust them with my papers. While I'm busy with life, they are busy writing my papers. They always do an outstanding job!
Courtney B.Courtney B.
Thank you! You were really patient with me and my needs. This was my first time using you guys, however, I will definitely be using you again!
John H.John H.
I cannot tell you enough how amazing your company is! Your writers are superb, on time, excellent content, so very thankful you reached out to me that day! Lifesaver for sure! Couldn’t be happier with the results I’ve gotten from my first 2 papers with you, I have 4 papers left to go and I’ll be using your company for them all!
Rebecca T.Rebecca T.
After I ordered a dissertation from your writing service, the first paper that I was given did not met my professor’s demand. I set the paper on revision and the writer made the revision for free meeting all my requirements and I was very satisfied
Thomas R.Thomas R.
I was shocked by how your writers managed to deliver my paper on time, and I was among the best in our class in that paper. Thank you so much and I will never hesitate to use you
error: protected!!