Financial Management: Theory & Practice
16th Edition
ISBN: 9781337909730
Author: Brigham
Publisher: Cengage
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Chapter 3, Problem 14P
The Jimenez Corporation’s
Jimenez Corporation: Forecasted Balance Sheet as of December 31, 2020
Jimenez Corporation:
Jimenez Corporation: Per Share Data for 2020
Notes:
aIndustry average ratios have been stable for the past 4 years.
bBased on year-end balance sheet figures.
cCalculation is based on a 365-day year.
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The Jimenez Corporation’s forecasted 2020 financial statements follow, along with some industry average ratios. Calculate Jimenez’s 2020 forecasted ratios, compare them with the industry average data, and comment briefly on Jimenez’s projected strengths and weaknesses.Jimenez Corporation:
Forecasted Balance Sheet as of December 31, 2020
Assets
Cash
72,000
Accounts receivable
439,000
Inventories
894,000
Total current assets
1,405,000
Fixed assets
431,000
Total assets
1,836,000
Liabilities and Equity
Accounts payable
332000
Notes payable
100,000
Accruals
170,000
Total current liabilities
602,000
Long-term debt
404,290
Common stock
575,000
Retained earnings
254,710
Total liabilities and equity
1,836,000
Jimenez Corporation: Forecasted Income Statement for 2020
Sales
4,290,000
Cost of goods sold
3,580,000
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525,456
Earnings before taxes (EBT)
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Earnings…
Chapter 3 Solutions
Financial Management: Theory & Practice
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