Sales method-forecast next year cost of goods sold

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1. Your company has sales of $100,000 this year and cost of goods sold of $72,000. You forecast sales to increase to $110,000 next year. Using the percent of sales method, forecast next year's cost of goods sold.

2. For the next fiscal year, you forecast net income of $50,000 and ending assets of $500,000. Your firm's payout ratio is 10%. Your beginning stockholders' equity is $300,000 and your beginning total liabilities are $120,000. Your non-debt liabilities such as accounts payable are forecasted to increase by $10,000. What is your net new financing needed for next year?

Using the information in the following table, calculate this company's

Net Income .................................................... $50,000

Beginning Total Asset ................................. $400,000

Beginning Stockholders' Equity ............... $250,000

Payout Ratio ................................................. $0%

Internal growth rate.

Sustainable growth rate.

Sustainable growth rate if it pays out 40% of its net income as a dividend.

1. You have just landed in London with $500 in your wallet. Stopping at the foreign exchange booth, you see that pounds are being quoted at $1.95/£. For how many pounds can you exchange your $500?

2. Your firm needs to pay its French supplier €500,000. If the exchange rate is €0.65/$, how many dollars will you need to make the exchange?

Reference no: EM132425080

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