Global Corp. expects sales to grow by 8% next year. Using the percent of sales method and the data provided in the given tables 9. forecast:a. Costs except depreciationb. Depreciationc. Net incomed. Cashe. Accounts receivablef. Inventoryg. Property, plant, and equipmenth. Accounts payable(Note: Interest expense will not change with a change in sales. Tax rate is 25%.)The Tax Cuts and Jobs Act of 2017 temporarily allows 100% bonus depreciation (effectively expensing capital expenditures). However, we will still include depreciation forecasting in this chapter and in these problems in anticipation of the return of standard depreciation practices during your career.a. Costs except depreciationThe forecasted costs except depreciation will be S million. (Round to one decimal place and enter all numbers as a positive.)b. DepreciationThe forecasted depreciation will be S million. (Round to one decimal place and enter all numbers as a positive.)c. Net incomeThe forecasted net income will be s million. (Round to one decimal place.)d. CashThe forecasted cash will be S million. (Round to one decimal place.)e. Accounts receivableThe forecasted accounts receivable will be S million. (Round to one decimal place.)f. InventoryThe forecasted inventory will be S million. (Round to one decimal place.)g. Property, plant, and equipmentThe forecasted property, plant, and equipment will be $ million. (Round to one decimal place.)h. Accounts payableThe forecasted accounts payable will be $million. (Round to one decimal place.) Income Statement ($ million)Balance Sheet ($ million)Net Sales185.9AssetsCosts Except Depreciation- 175.1Cash23.8EBITDA10.8Accounts Receivable17.8Depreciation and AmortizationEBIT- 1.2Inventories15.49.6Total Current Assets57.0Interest Income (expense)- 1.9Net Property, Plant, andEquipment113.17.7- 1.9Pre-tax IncomeTotal Assets170.1Taxes (25%)-Liabilities and EquityAccounts PayableLong-Term DebtNet Income5.835.1112.1Total Liabilities147.2Total Stockholders' EquityTotal Liabilities and Equity22.9170.1

First lets find out what is the percent of existing figures(balance sheet and income statement) as a…

pt depreciation d costs except depreciation will be S million. (Round to one decimal place and enter all number an d depreciation will be S million. (Round to one decimal place and enter all numbers as a positiv d net income will be S million. (Round to one decimal place.) I cash will be s million. (Round to one decimal place.) eceivable d accounts receivable will be s million. (Round to one decimal place.) d inventory will be SO million. (Round to one decimal place.)

pt depreciation d costs except depreciation will be S million. (Round to one decimal place and enter all number an d depreciation will be S million. (Round to one decimal place and enter all numbers as a positiv d net income will be S million. (Round to one decimal place.) I cash will be s million. (Round to one decimal place.) eceivable d accounts receivable will be s million. (Round to one decimal place.) d inventory will be SO million. (Round to one decimal place.)

Entrepreneurial Finance

6th Edition

ISBN:9781337635653

Author:Leach

Publisher:Leach

Chapter4A: Nopat Breakeven: Revenues Needed To Cover Total Operating Costs

Section: Chapter Questions

Problem 1EP

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