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Cadbury Plc Is a Global Confectionery Company A)£1,259
B)£1,397
C)£1,530
D)£2,027
E)£2,138

question 62

Multiple Choice

Cadbury plc is a global confectionery company. Cadbury is forecasting its financial statements for Year 5. Selected financial information for Year 4 is provided in the table. What is the long term debt, the plug variable, amount for the forecasted year? To forecast accounts payable use the percentage of sales method based on Year 4 figures. Assume that no dividends are paid in Year 5. Selected Financial Information
Cadbury plc Year 4 (£ millions)
 Year 4  Forecast  Revenue £4,022£5,802 Net Income £393£528 TOTAL ASSETS 8,89510,275 LIABILITIES AND  STOCKHOLDERS’ EQUITY  Short Term Debt 1,1891,189 Accounts payable 1,551 Total Current Liabilities 2,740 Long Term Debt 1,973 Other Liabilities 648648 Total Liabilities 5,361 Shareholders’ Equity  Common Stock 1,0361,036 Retained Earnings 2,498 Total Shareholders’ Equity 3,534 Total Liabilities & Shareholders’  Equity 8,895\begin{array} { | c | c | c | } \hline & \text { Year 4 } & \text { Forecast } \\\hline \text { Revenue } & £ 4,022 & £ 5,802 \\\hline \text { Net Income } & £ 393 & £ 528 \\\hline \\\hline \text { TOTAL ASSETS } & 8,895 &10,275 \\\hline \text { LIABILITIES AND } & & \\\text { STOCKHOLDERS' EQUITY } & & \\\hline \text { Short Term Debt } & 1,189 & 1,189 \\\hline \text { Accounts payable } & 1,551 & \\\hline \text { Total Current Liabilities } & 2,740 & \\\hline \text { Long Term Debt } & 1,973 & \\\hline \text { Other Liabilities } & 648 & 648 \\\hline \text { Total Liabilities } & 5,361 & \\\hline \text { Shareholders' Equity } & & \\\hline \text { Common Stock } & 1,036 & 1,036 \\\hline \text { Retained Earnings } & 2,498 & \\\hline \text { Total Shareholders' Equity } & 3,534 & \\\hline \text { Total Liabilities \& Shareholders' } & & \\\text { Equity } & 8,895 & \\\hline\end{array}


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