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Case 19

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assets 361.4 sales 987 spon liabilities 161.4 change in sales 413.2 net profit margin 0.0348 retained earnings net income 34.3 1) sales in year t+1 1400.2 2) a) 70.62
0.2026 n b) 0.048
413.2 change in sales c) 1467.64 1538.32 1612.41
0.269 b
0.0348 net profit margin 3) a) 36.36%
1400.2 sales in year t+1 b) 36.73% c) 31.81% total equity 200.8 roe 0.171 4) a) 28.596 re/ni 0.269 b) 123.7 wo change w/change diff 5) sales 5%+ 1400.2 1470.21 -70.01 bad debt exp 18.2 102.91 -84.7147 discount taken 0 26.46378 -26.46378 net sales 1382 1393.75908 -11.75908 variable cost 1050.2 1102.6575 -52.4575 fixed cost 252 252 0 earnings b. tax 79.8 39.10158 40.69842 taxes (40%) 31.9 15.640632 16.259368 net income 47.9 23.460948 24.439052 capital cost 35 2.81531376 32.18468624 gain 12.9 20.64563424 10.08468624 6) a) b) sales 5%+ 1778.3 bad debt exp 124.481 discount taken 32.0094 net sales 1685.8284 variable cost 1333.725 fixed cost 252 earnings b. tax 100.1034 taxes (40%) 40.04136 net income 60.06204 capital cost 7.2074448 gain 52.8545952 7) A) stricter credit standards will cause other firms to follow and force the payments to be made across the boards. B) 8) Stanley shoud continue without the

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