Blockbuster is a video rental and retail chain. Blockbuster is forecasting its financial statements for Year 7. Selected financial information for Year 6 is provided in the table
What is long term debt (the plug variable) for the forecasted year? To forecast current liabilities payable use the percentage of sales method based on Year 6 figures. Assume that no dividends are paid in Year 7.
Selected Financial Information
Blockbuster Inc ($ '000)
Year 6 Forecast
Revenue $5,157,600 $5,673,360
Net Income -240,300 -195,733
TOTAL ASSETS $7,752,400 $7,746,790
LIABILITIES AND STOCKHOLDERS' EQUITY
Total Current Liabilities 1,268,800
Long Term Debt 734,900
Shareholders' Equity
Common Stock 6,075,800 6,075,800
Retained Earnings -327,100
Total Shareholders' Equity 5,748,700
Total Liabilities & Shareholders' Equity $7,752,400
A) $707,803
B) $743,168
C) $793,168
D) $798,143
E) $798,988
D
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Chilé Products Ltd. Chilé Products Ltd. bottles and sells hot pepper sauce. In 2012, the company had expected to sell 65,000 bottles but actually bottled and sold 80,000 bottles. The standard direct materials cost for each bottle is $.24 comprised of .60 ounces at a cost of $.40 per ounce. During 2012, 52,000 ounces of material were purchased out of which 46,000 ounces were used at a cost of
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