Polaris Industries produces a wide range of outdoor leisure vehicles including all-terrain vehicles (ATV's),motorcycles,and snowmobiles.Forecast the financial statements for Polaris for Year 6.Use the percent of sales method based on Year 5 and the assumptions listed below.Please note the ratios to sales provided in the table which are useful for making the forecast.
Sales decline by 5.5%.The cost of debt is 11.76%.The tax rate is 31%.The depreciation rate is 12%.CAPEX is $28,360.The following accounts are held constant: Goodwill,Long-term debt,and Common Stock.Cash is the PLUG account.No dividends.
Forecast the financial statements for Polaris.What is the change in the cash account from Year 5 to Year 6?
Polaris Industries Inc.
Income Statement and Balance Sheet
As of December 31,Year 5 ($000's)

Question

Quizplus · Accepted Answer

Change in Cash = 11ea7fdb_fc45_a78e_a768_3f82fc52f2ad_TB2902_11 - 11ea7fdb_fc45_a78f_a768_8bacb08c4760_TB2902_11 Change in Cash = $154,821 - $19,675
Change in Cash = $135,146
Polaris will generate a surplus of $135,146,000.
Polaris Industries Inc.
Income Statement and Balance Sheet
As of December 31, Year 5 ($000's)
 11ea7fdb_fc45_a790_a768_a78aac492aac_TB2902_00

Polaris Industries Produces a Wide Range of Outdoor Leisure Vehicles