External sources to fund the expected growth

Assignment Help Financial Management

Reference no: EM131892022

Suppose that Wind Em Corp. currently has the balance sheet shown below, and that sales for the year just ended were $7.4 million. The firm also has a profit margin of 20 percent, a retention ratio of 25 percent, and expects sales of $8.4 million next year. Assets Liabilities and Equity Current assets $ 2,296,000 Current liabilities $ 3,001,440 Fixed assets 5,400,000 Long-term debt 1,700,000 Equity 2,994,560 Total assets $ 7,696,000 Total liabilities and equity $ 7,696,000 If all assets and current liabilities are expected to grow with sales, what amount of additional funds will Wind Em need from external sources to fund the expected growth? (Enter your answer in dollars not in millions.)

Reference no: EM131892022

Questions Cloud

Confidence interval for the proportions the population : A survey of 453 citizens found that 347of them favor a new bill introduced by the city/ We want to find a 95% confidence interval for the proportions

How many women did not report sexual assault : Dr. Johnson also needs to be prepared to present evidence on how many women did not report sexual assault and the various reasons they fail to contact.

Explain why did you include each of the ten elements : Explain why did you include each of the ten elements? Why is a Code of Ethics an important part of every business from an employer standpoint?

Standard deviation of the sampling distribution : What is the standard deviation of the sampling distribution?

External sources to fund the expected growth : what amount of additional funds will Wind Em need from external sources to fund the expected growth?

Formulate components of organizational strategic goals : Conduct research on the availability of key internal and external data, including but not limited to historical and current financial data.

What will be the firm cash cycle : Assuming that all of LilyMac’s sales are on credit, what will be the firm’s cash cycle?

Discuss power component of applicable communication theories : Discuss the power components of the applicable communication theories, concepts/terms/theories from the module readings and applicable communication theories.

Calculation of the debt component : What would the appropriate tax rate be for use in the calculation of the debt component of LilyMac’s WACC?

User Account

All Pages