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QUESTION
The Strathman Corporation, a metal forming company, had the following year-end results: For next year, Strathman is making the following planning...
The Strathman Corporation, a metal forming company, had the following year-end results:
For next year, Strathman is making the following planning assumptions:
- Revenue growth: 7.5%
- IBT Margin: 1 percentage point higher than current year (e.g., from 21 % to 22%)
- Tax Rate: Unchanged
- Dividends: Same dollar amount as current year
- Current Assets: Increase 2% faster than the sales growth rate
- Net Fixed Assets: $2.5 million net increase
- Long-Term Debt: Repay $0.6 million
- Repurchase $1.8 million in common shares (a reduction in Common Stock)
- What amount of Short-term Debt will be needed in Box 1
