Calculate amount of new funds required to finance growth

Assignment Help Financial Management

Reference no: EM131308918

The following is the balance sheet for 2003 for Marbell Inc. Marbell Inc. Balance Sheet 12/31/2003 Assets Liabilities and Stockholders’ Equity Cash $ 15,000 Accts. Payable $ 90,000 Accts. Rec. 90,000 Notes payable (non-spontaneous) 30,000 Inventory 60,000 Accrued expenses 7,500 Current Assets 165,000 Current Liabilities 127,500 Fixed assets (non-spontaneous) 60,000 Common stock 75,000 Retained earnings 22,500 Total assets $225,000 Total Liabilities + S.E. Equity $225,000 Sales for 2002 were $300,000. Sales for 2003 have been projected to increase by 20%. Assuming that Marbell Inc. is operating below capacity, calculate the amount of new funds required to finance this growth. Marbell has an 8% return on sales and 70% is paid out as dividends.

Reference no: EM131308918

Questions Cloud

Prepare a presentation to a brazilian audience : Prepare a presentation to a Brazilian audience.- The manager of a Brazilian bank has approached your school about the possibility of sending 30 of its managers to your institution to pursue a three-month intensive course in written and oral busines..

Assuming they donot save any additional funds : Your parents will retire in 28 years. They currently have $270,000 saved, and they think they will need $2,200,000 at retirement. What annual interest rate must they earn to reach their goal, assuming they don't save any additional funds?

Change situation more effective : Being a leader with leader's spirit, compassion, values, and skills will make the change situation more effective (Sidra, Zuhair, Noman & Sajid, 2012).What is a leader's spirit? What are your thoughts? How do you develop one?

Prepare a presentation to a south korean audience : Prepare a presentation to a South Korean audience.- Imagine that you invented a new product that you would like to sell to the South Korean market.

Calculate amount of new funds required to finance growth : The following is the balance sheet for 2003 for Marbell Inc. Marbell Inc. Balance Sheet 12/31/2003 Assets Liabilities and Stockholders’ Equity Cash $ 15,000 Accts. calculate the amount of new funds required to finance this growth. Marbell has an 8% r..

Outline the main differences between database requirements : Outline the main differences between database requirements for operational data and for decision support data. Describe three examples in which databases could be used to support decision making in a large organizational environment.

What is the value of the bond : Enterprise, Inc. bonds have an annual coupon rate of 11 percent. The interest is paid semiannually and the bonds mature in 9 years. Their par value is $1,000. If the market's required yield to maturity on a comparable-risk bond is 14 percent, what..

Which methods were easiest and most natural : Which methods were easiest and most natural for you to deliver? Which were most difficult? How can you adjust to different styles, even though you may be more comfortable with one than the others?

Importance of operations and supply chain management : Write a 700- to 1,050-word paper in which you describe the importance of operations and supply chain management to a company's strategy, and define the dimensions of quality.

User Account

All Pages