GLOBAL CORPORATION
Forecast
2021 2022
Cash $50,000 $60,000
Accounts Receivables 200,000 290,000
Inventories 450,000 570,000
Total Current Assets 700,000 920,000
Fixed Assets, Net 300,000 380,000
Total Assets $1,000,000 $1,300,000
Accounts Payable $140,000 $180,000
Accruals 50,000 70,000
Bank Loan 80,000 90,000
Total Current Liabilities 270,000 340,000
Long-Term Debt 400,000 550,000
Common Stock ($1 par) 50,000 50,000
Capital Surplus 200,000 200,000
Retained Earnings 80,000 160,000
Total Liab. & Equity $1,000,000 $1,300,000
Forecast
2021 2022
Net Sales $1,300,000 $1,600,000
Cost of Goods Sold 780,000 960,000
Gross Profit 520,000 640,000
Marketing 130,000 160,000
General & Administrative 150,000 150,000
Depreciation 40,000 55,000
EBIT 200,000 275,000
Interest 45,000 55,000
Earnings Before Taxes 155,000 220,000
Income Taxes (40% rate) 62,000 88,000
Net Income $93,000 $132,000
Assume that the cash account includes only required cash. Determine the dollar amount of equity valuation cash flow of Global Corporation for 2022.
$48,000
$52,000
$60,000
$32,000
None of the above