Financial Analysis of SPI Phone 86

School: University of Toronto - Course: FINANCE 123 - Subject: Accounting

Table 9.1: SPI Phone 86 Incremental Earnings Forecast Incremental Earnings Forecast ($000s)Year 01234 Unit Sales (000s) ASP Sales COGS Gross Profit SG&A R&D CCA EBIT Tax (40%) Unlevered Net Income Table 9.2: SPI 86 Schedule of CCA and UCC CapEx, UCC, and CCA Forecasts (000s)Year 01234 CapEx (remember 1/2 year rule) UCC (beg of year) CCA =UCC*d UCC (end of year) CCA rate
Table 9.1: SPI Phone 86 Incremental Earnings Incremental Earnings Forecast ($000s) 501 Unit Sales (000s)100 ASP$260 Sales$26,000 COGS-$11,000 Gross Profit$15,000 SG&A-$2,800 R&D-$15,000 CCA-$1,688 EBIT-$15,000$10,513 Tax (40%)$6,000-$4,205 Unlevered Net Income-$9,000$6,308 Table 9.2: SPI 86 Schedule of CCA and UCC CapEx, UCC, and CCA Forecasts (000s) 501 CapEx (remember 1/2 year rule)$7,500 UCC (beg of year)$3,750 CCA =UCC*d$1,688 UCC (end of year)$2,063 CCA rate45%
Forecast Year 2345 100100100 $260$260$260 $26,000$26,000$26,000 -$11,000-$11,000-$11,000 $15,000$15,000$15,000 -$2,800-$2,800-$2,800 -$2,616-$1,439-$791-$435 $9,584$10,761$11,409-$435 -$3,834-$4,305-$4,564$174 $5,751$6,457$6,845-$261 Year 2345 $5,813$3,197$1,758$967 $2,616$1,439$791$435 $3,197$1,758$967$532

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