Polaris Industries produces a wide range of outdoor leisure vehicles including all-terrain vehicles (ATV's), motorcycles, and snowmobiles
Use the equation approach and Polaris' financial statement for Year 5 to calculate additional funds needed (AFN) in Year 6. Assume that sales in Year 6 will be $1.803494 billion. Assume a 0% dividend payout rate.
Polaris Industries Inc.
Income Statement and Balance Sheet
As of December 31, Year 5 ($000's)
Revenue $ 1,908,459
COGS 1,454,374
SG&A 213,114
Dep. Exp. 28,632
EBIT 212,339
Int. Exp. 4,713
Income Before Tax 207,626
Income Taxes 64,348
Net Income $ 143,278
ASSETS
Cash $ 19,675
Accounts Receivable 354,313
Total current assets 373,988
PP&E 222,336
Goodwill 172,632
Total Assets $ 768,956
LIABILITIES AND OWNERS EQUITY
Total Current Liabilities 381,299
Long Term Debt 18,000
Total Liabilities $ 399,299
Owners Equity
Common Stock 417
Retained Earnings 369,240
Total Owners Equity 369,657
Total Liabilities and Owners Equity $ 768,956
A) -$135 million
B) -$139 million
C) -$146 million
D) -$155 million
E) $132 million
C
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