Homework 7 Fall 2023

Homework 7 Fill in the four yellow cells using formulas. Find the DFN for this firm. The firm Hellbound Train, Inc. Pro Forma Balance Sheet in thousands of dollars Assets 2023* 2022 2021 Cash 270.0 270.0 125.0 Extra Cash PLUG 0.0 Marketable Securities 375.0 375.0 250.0 Accounts Receivable 1,234.2 1,125.0 875.0 Inventory 3,217.7 3,125.0 2,125.0 PrePaid Expenses 300.0 300.0 100.0 Current Assets 5,396.9 5,195.0 3,475.0 Plant & Equipment 14,875.0 13,375.0 12,000.0 Accumulated Depreciation 1,475.0 1,025.0 725.0 Net Plant & Equipment 13,400.0 12,350.0 11,275.0 Long Term Investment 1,300.0 1,125.0 900.0 Total Assets 20,096.9 18,670.0 15,650.0 Liabilities and Equity 2023* 2022 2021 Accounts Payable 1,243.7 1,050.0 950.0 Notes Payable 375.0 375.0 250.0 Accrued Expenses 382.7 375.0 250.0 Other Current Liabilities 500.0 500.0 450.0 Current Liabilities 2,501.4 2,300.0 1,900.0 Long term Debt 7,250.0 7,250.0 6,250.0 Additional Long-term Debt 1,011.1 Total Liabilities 10,762.5 9,550.0 8,150.0 Common Stock (par $25) 6,250.0 6,250.0 5,000.0 Additional Paid-in Capital 1,500.0 1,500.0 1,250.0

Retained Earnings 1,584.4 1,370.0 1,250.0 Total Stockholders' Equity 9,334.4 9,120.0 7,500.0 Total Liabilities and Equity 20,096.9 18,670.0 15,650.0 *forecast Discretionary Funds Needed 1,011.1 Notes: Addition to Plant & Equipment 1,500.0 Expected life of new Plant & Equipment 10 Salvage Value 0 additional Depreciation 150.0

m will use Long Term Debt for any financing needs Hellbound Train, Inc. Pro Forma Income Statement in thousands of dollars 2023* 2022 2021 Sales 21,185.0 18,875.0 15,375.0 Costs of Goods 15,903.9 14,375.0 11,375.0 Gross Profits 5,281.1 4,500.0 4,000.0 Selling and G&A Expenses 2,407.8 2,050.0 1,825.0 Fixed Expenses 500.0 500.0 500.0 Lease Expenses 375.0 375.0 375.0 1,998.4 1,575.0 1,300.0 Depreciation 450.0 300.0 250.0 Operating Income (EBIT) 1,548.4 1,275.0 1,050.0 Interest Expense 991.0 875.0 750.0 Pre-tax Income 557.3 400.0 300.0 Tax 222.9 160.0 120.0 Net Income 334.4 240.0 180.0 * forecasted Notes: Tax Rate 40% 40% 40% Shares Outstanding 250,000 250,000 200,000 Dividend per share 0.48 0.48 0.45 interest rate 11.475% Operating Income Before Depreciation(EBITDA)