Sales are expected to increase

Assignment Help Financial Management
Reference no: EM131571135

Broussard Skateboard's sales are expected to increase by 15% from $8.4 million in 2016 to $9.66 million in 2017. Its assets totaled $3 million at the end of 2016. Broussard is already at full capacity, so its assets must grow at the same rate as projected sales. At the end of 2016, current liabilities were $1.4 million, consisting of $450,000 of accounts payable, $500,000 of notes payable, and $450,000 of accruals. The after-tax profit margin is forecasted to be 3%, and the forecasted payout ratio is 60%. Use the AFN equation to forecast Broussard's additional funds needed for the coming year. Round your answer to the nearest dollar. Do not round intermediate calculations. $

Reference no: EM131571135

Questions Cloud

What would be the total return of bond in percent : What would be the total return of the bond in dollars? What would be the total return of the bond in percent?
Calculate vintage return on equity : The total assets to equity ratio for the firm is 2.4. Calculate Vintage’s return on equity.
About fraction reserved system the main thinks : Tell me about Fraction Reserved system the main thinks?
Which bond will give the client more profit after taxes : Determine the equivalent taxable yield. Which bond will give the client more profit after taxes?
Sales are expected to increase : Broussard Skateboard's sales are expected to increase by 15% from $8.4 million in 2016 to $9.66 million in 2017.
Activities undertaken by the company to produce product : Which of the following is defined as a series of activities undertaken by the company to produce a product or service?
Two firms can both obtain cheaper financing using swap : Assume A prefers fixed rate and B prefers floating rate. Show how these two firms can both obtain cheaper financing using a swap.
What is value of new firm equity-gain or loss for bondholder : What is the combined value of equity in the two existing companies? What is the value of the new firm’s equity? What was the gain or loss for bondholders?
What is berndt expected net income and net cash flow : The Berndt Corporation expects to have sales of $12 million. What is Berndt's expected net cash flow? What is Berndt's expected net income?

Reviews

Write a Review

Financial Management Questions & Answers

  Evaluating project that costs

We are evaluating a project that costs $739,000, has an seven-year life, and has no salvage value. Assume that depreciation is straight-line to zero over the life of the project. Sales are projected at 134,000 units per year. Price per unit is $44, v..

  Calculate depreciation for each year-after-tax salvage value

Geary Machine Shop is considering a four-year project to improve its production efficiency. Buying a new machine press for $681,600 is estimated to result in $227,200 in annual pretax cost savings. Calculate the depreciation for each year and use to ..

  Compounding on an annual basis

Julie currently has on hand $30,000 that will be deposited in a savings account until it accumulates to $50,000. How long will it take Julie to accumulate the $50,000, assuming 7% compounding on an annual basis? Please show work.

  Brokerage account-time to reach financial goal

You have $60,701.28 in a brokerage account, and you plan to deposit an additional $3,000 at the end of every future year until your account totals $250,000. You expect to earn 11% annually on the account. How many years will it take to reach your goa..

  The principal use of an article refers

The principal use of an article refers to: a. the purpose for which it is to be imported. b. the use that is greater than any other single use of the article. c. the use of the components once they are fully assembled. d. any one of the above.

  Gain or loss if the company is liquidated

Individuals Lloyd and Grace form an S corporation, with Lloyd contributing cash of $100,000 for a 50% interest, and Grace contributing appreciated ordinary income property (adjusted basis of $20,000 and a fair market value of $100,000). Determine Llo..

  Coupon with semiannual payments

Which of the following is correct for a bond priced at $1,200 that has 8 years remaining until maturity, and a 10% coupon with semiannual payments?

  Tax rate would investor be indifferent between two bonds

Corporate bonds issued by Johnson Corporation currently yield 8%. Municipal bonds of equal risk currently yield 6%. At what tax rate would an investor be indifferent between these two bonds?

  Calculate geometric average of the annual rates of return

With reference to case study session 1, obtain the Dow Jones Islamic Index over a recent 15 year period. Then answer the following questions. End of Dow Jones Islamic Year Index 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 20..

  Developing two types of bracelets

Victoria Jewelry is developing two types of bracelets, Small bracelet and Big bracelet, at minimal cost. state Objective Function, tate all Constraints:

  About investors expectations of future interest rates

If the risk free yield curve is inverted (long term risk free interest rates are lower than short term risk free interest rates), what is this likely to imply about investor’s expectations of future interest rates?

  Recently issued bond with the characteristics

Duke Energy has recently issued a bond with the following characteristics: maturity: 20 years, coupon rate: 8% (paid semi-annually), face value: $1000. Your investment advisor has told you that the yield-to-maturity on this bond is 7.5%. What should ..

Free Assignment Quote

Assured A++ Grade

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd