This paper circulates around the core theme of We have the following information for Athabasca Inc. (10 marks) Athabasca, Inc. 2010 Income together with its essential aspects. It has been reviewed and purchased by the majority of students thus, this paper is rated 4.8 out of 5 points by the students. In addition to this, the price of this paper commences from £ 99. To get this paper written from the scratch, order this assignment now. 100% confidential, 100% plagiarism-free.
1. We have the following information for Athabasca Inc. (10 marks) Athabasca, Inc. 2010 Income… 1 answer below » 1. We have the following information for Athabasca Inc. (10 marks) Athabasca, Inc. 2010 Income Statement ($ in millions) Net Sales $1,384 Less: Cost of Goods Sold 605 Less: Depreciation 180 Earnings before interest and taxes 599 Less: Interest paid 80 Taxable Income 519 Less: Taxes 156 Net Income $ 363 Addition to retained earnings $ 254 Cash dividends paid 109 Document Preview: 1. We have the following information for Athabasca Inc. (10 marks) Athabasca, Inc. 2010 Income Statement ($ View complete question » 1. We have the following information for Athabasca Inc. (10 marks) Athabasca, Inc. 2010 Income Statement ($ in millions) Net Sales $1,384 Less: Cost of Goods Sold 605 Less: Depreciation 180 Earnings before interest and taxes 599 Less: Interest paid 80 Taxable Income 519 Less: Taxes 156 Net Income $ 363 Addition to retained earnings $ 254 Cash dividends paid 109 Document Preview: 1. We have the following information for Athabasca Inc. (10 marks) Athabasca, Inc. 2010 Income Statement ($ in millions) Net Sales $1,384 Less: Cost of Goods Sold 605 Less: Depreciation 180 Earnings before interest and taxes 599 Less: Interest paid 80 Taxable Income 519 Less: Taxes 156 Net Income $ 363 Addition to retained earnings $ 254 Cash dividends paid 109 Athabasca, Inc. 12/31/09 and 12/31/10 Balance Sheet ($ in millions) 2009 2010 2009 2010 Cash $ 100 $ 121 Accounts payable $ 400 $ 350 A/R 350 425 Notes payable 390 370 Inventory 440 410 Total CL $ 790 $ 720 Total CA $ 890 $ 956 Long-term debt 500 550 Net fixed assets 1,556 1,704 Owner’s equity Common stock 600 580 Retained Earnings 556 810 Total assets $2,446 $2,660 Total liabilities $2,446 $2,660 The firm has 180 million common shares outstanding. Calculate the following: a. Earnings retention ratio for 2010. b. The dividend to be paid (in dollars) in 2011. Assume Athabasca is projecting a 20% increase in sales for the coming year, and that cost of goods sold and general/administrative expenses remain a constant percentage of sales. Also assume that depreciation, interest paid, and the firm’s tax rate remain unchanged and that the firm’s dividend payout is 40%. c. Capital intensity ratio based on the 2010 results. d. Full capacity sales if Athabasca is currently operating at 70% capacity. e. External financing needed (EFN) for 2011 if Athabasca is projecting a 20% increase in sales for the coming year. Assume that assets, all costs, and current liabilities are proportional to sales but that long-term debt is not proportional to sales. Also assume that the firm’s tax rate remains unchanged and the dividend payout is 40%. f. External financing needed (EFN) for 2011 if Athabasca is projecting a 20% increase in sales for the coming year, with current assets, all costs, and current liabilities proportional to sales. Long-term debt is not proportional to sales. Assume the firm’s tax rate remains unchanged, the… Attachments: Q-Attachment…..docx View less » Aug 01 2015 01:09 PM
