The most recent financial statements for Moose Tours, Inc., appear below. Sales for 2016 are projected to grow by 20 percent. Interest expense will remain constant; the tax rate and the dividend payout rate will also remain constant. Costs, other expenses, current assets, fixed assets, and accounts payable increase spontaneously with sales. MOOSE TOURS, INC. 2015 Income Statement Sales $ 747,000 Costs 582,000 Other expenses 18,000 Earnings before interest and taxes $ 147,000 Interest expense 15,000 Taxable income $ 132,000 Taxes (30%) 39,600 Net income $ 92,400 Dividends $ 18,480 Addition to retained earnings 73,920 MOOSE TOURS, INC. Balance Sheet as of December 31, 2015 Assets Liabilities and Owners Equity Current assets Current liabilities Cash $ 20,640 Accounts payable $ 54,800 Accounts receivable 32,960 Notes payable 14,000 Inventory 69,920 Total $ 68,800 Total $ 123,520 Long-term debt $ 130,000 Fixed assets Owners equity Net plant and equipment $ 410,000 Common stock and paid-in surplus $ 116,000 Retained earnings 218,720 Total $ 334,720 Total assets $ 533,520 Total liabilities and owners equity $ 533,520 What is the EFN if the firm was operating at only 80 percent of capacity in 2015? Assume that fixed assets are sold so that the company has a 100 percent asset utilization. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) EFN $ [removed]
Looking for a solution written from scratch with No plagiarism and No AI?
WHY CHOOSE US?
We deliver quality original papers |
Our experts write quality original papers using academic databases.We dont use AI in our work. We refund your money if AI is detected |
Free revisions |
We offer our clients multiple free revisions just to ensure you get what you want. |
Discounted prices |
All our prices are discounted which makes it affordable to you. Use code FIRST15 to get your discount |
100% originality |
We deliver papers that are written from scratch to deliver 100% originality. Our papers are free from plagiarism and NO similarity.We have ZERO TOLERANCE TO USE OF AI |
On-time delivery |
We will deliver your paper on time even on short notice or short deadline, overnight essay or even an urgent essay |