Service

Chat Now

The most recent financial statements for Moose Tours, Inc.,appear below. Sales for 2016 ar

The most recent financial statements for Moose Tours, Inc.,appear below. Sales for 2016 ar

The most recent financial statements for Moose Tours, Inc.,appear below. Sales for 2016 are projected to grow by 20 percent.Interest expense will remain constant; the tax rate and thedividend payout rate will also remain constant. Costs, otherexpenses, current assets, fixed assets, and accounts payableincrease spontaneously with sales. MOOSE TOURS, INC. 2015 IncomeStatement Sales $ 745,000 Costs 580,000 Other expenses 16,000Earnings before interest and taxes $ 149,000 Interest expense12,000 Taxable income $ 137,000 Taxes (35%) 47,950 Net income $89,050 Dividends $ 21,920 Addition to retained earnings 67,130MOOSE TOURS, INC. Balance Sheet as of December 31, 2015 AssetsLiabilities and Owners’ Equity Current assets Current liabilitiesCash $ 20,440 Accounts payable $ 54,600 Accounts receivable 32,760Notes payable 13,800 Inventory 69,720 Total $ 68,400 Total $122,920 Long-term debt $ 128,000 Fixed assets Owners’ equity Netplant and equipment $ 480,000 Common stock and paid-in surplus $114,000 Retained earnings 292,520 Total $ 406,520 Total assets $602,920 Total liabilities and owners’ equity $ 602,920

What is the EFN if the firm was operating at only 80 percent ofcapacity in 2015? Assume that fixed assets are sold so that thecompany has a 100 percent asset utilization. (A negative answershould be indicated by a minus sign. Do not round intermediatecalculations and round your answer to the nearest whole number,e.g., 32.)

Abhinav 02-Dec-2019

Answer (UnSolved)

question Get solution