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Chapter 4

Input boxes in tanOutput boxes in yellow

Given data in blue

Calculations in red

Answers in green

NOTE: Some functions used in these spreadsheets may require thatthe "Analysis ToolPak" or "Solver Add-in" be installed in Excel.

To install these, click on "Tools|Add-Ins" and select "Analysis ToolPakand "Solver Add-In."

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Chapter 4Question 5

Input area:

SalesCostsCurrent assetsFixed assetsCurrent liabilitiesLong-term debtEquity

Sales increasePayout ratio

Tax rate

Output area:

Pro forma income statement Pro forma balance sheetSales -$ Current assets -$ Current liabilities -$Costs - Fixed assets - Long-term debt -Taxable income -$ Equity -Taxes - Total -$ Total -$

Net income -$

Dividends -$Add. To RE -$

External financing = Total assets - Total debt & equity = -$

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Chapter 4Question 6

Input area:

SalesCostsCurrent assetsFixed assetsDebtEquity

Payout ratio

Tax rate

Output area:

Sales -$ Current assetsCosts - Fixed assetsTaxable income -$Taxes - Total

Net income -$

Dividends -$Add. To RE -

Return on assets = Net income / Total assets = #DIV/0!Internal growth rate = (Return on assets X b) / (1 - Return on a

Income statement

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-$ Debt -$- Equity -

-$ Total -$

b = 1.0sets X b) = #DIV/0!

Balance sheet

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Chapter 4Question 21

Input area:

Total debt ratioPayout ratioTotal asset turnoverProfit margin

Output area:

Debt/equity #DIV/0!

Return on assets 0.00%

Plowback ratio 1

Return on equity #DIV/0!

Sustainable growth rate #DIV/0!

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Chapter 4Question 23

Input area:

Beginning equityEnding TANet incomeDividends

Output area:

Ending equity -$Plowback ratio #DIV/0!

ROE (beg. equity) #DIV/0!ROE (ending equity) #DIV/0!

Exact SGR #DIV/0!

ROE x b (using beg. #DIV/0!

Equity for ROE)

ROE x b (using end #DIV/0!

Equity for ROE)

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Chapter 4Questions 26-27

Input area:

For problems 26 and 27, change the

percent sales growth rate in the input

area below.

SalesCostsOther expensesInterest expenseCash

Accounts receivableInventoryNet plant and equipment

Accounts payableNotes payableLong-term debtCommon stock

Retained earnings2006 Net incomeDividends

Add. to retained earnings

Sales increaseOperating capacityTax rate

Output area:

Dividend payout ratio = #DIV/0!

2007 Pro Forma Income Statement Assets Liabilities and owners'Sales -$ Current assets Current liabilitiesCosts - Cash -$ Accounts payable $Other expenses - Accounts receivable - Notes payableEBIT -$ Inventory - Total $Interest expense - Total -$ Long-term debtTaxable income -$ Fixed assetsTaxes - Net plant and Owners' equityNet income -$ equipment - Common stock and $

Dividends #DIV/0! paid-in surplusAdd. To RE #DIV/0! Retained earnings

TotalTotal liabilities and

Total assets -$ owners' equity

External financing = Total assets - Total debt & equity = #DIV/0!

#25 and #26

Full capacity sales #DIV/0!Fixed assets required at full capacity #DIV/0!Total fixed assets #DIV/0!

External financing needed #DIV/0!

#27

2006 Debt/equity ratio #DIV/0!New total debt #DIV/0!

External financing needed #DIV/0!

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