Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Question: A firm with sales of $5,000 has the following balance sheet:
Assets, Liabilities and Equity as of xx/xx/xx
Assets
Liabilities and Equity
Accounts receivable
$1,300
Accounts payable
$1,200
Inventory
1,600
Long-term debt
2,500
Plant
1,700
Equity
900
Total
$4,600
The firm earns 20 percent on sales and expects those sales to rise to $5,500. The increased sales may require additional financing. Accounts receivable and inventory will increase, and trade accounts will also spontaneously increase with the increase in sales. Management expects to distribute 75% of earnings.
a. Determine the new balance sheet entries for those assets and liabilities that spontaneously change with the level of sales using the percent of sales technique. (Accounts receivable, inventory, and accounts payable vary with sales; the other entries do not). Round off to nearest percentage point, such as 22% or .22.
b. Will the firm need external financing to achieve sales of $5,500?
c. Construct the pro forma balance sheet for sales of $5,500. Any new financing should be obtained by issuing new long-term debt. Any excess funds should be held in cash.
General Cereal common stock dividends have been growing at an annual rate of 7% per year over the last ten years. Current dividend is 1.70 each share.
Assuming all payments, except the first $2 million are paid at the end of each year and the discount rate is 9% what kind of deal did the soccer player snag?
An insurance policy is considered analogous to an option. From a policyholder's perspective, what type of option is an insurance policy? Why?
Discuss the Roth IRA, stating who can contribute and the advantages or disadvantages.
If Yurdone requires a return of 10 percent on such undertakings, should the firm accept or reject the project?
What is the annual amount that Louis can spend while on his world tour if he will have no money left in the bank when he dies? This is assuming that Louis has a remaining life of 25 years and earns 9% on his savings.
Quantum and Aquafin Products. Senior managers at Quantum Products are evaluated in terms of rise in profit.
Bob bought some land costing $15,740. Today, that same land is valued at $45,517. How long has Bob owned this land if the price of land has been increasing at 6 percent per year?
Last year Lakesha's Lounge Furniture Corporation had an ROE of 18.0 percent and a dividend payout ratio of 23 percent. What is the sustainable growth rate?
Find what is this offer worth to you today at a discount rate of 8% - npv or CF function or timeline
A service charge of $5 was levied by the bank. You made a $85 deposit yesterday that is not on the statement. What is the reconciled balance?
Which option strategy would you pursue? Be specific, thus I want you to look up current options for Duke Power and tell me which option you would choose, why, and how much you would pay/receive.
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd