The company''s capital intensity ratio

Assignment Help Operation Management

Reference no: EM13725740

Question A- Bannister Legal Services generated $2 million in sales during 2010, and its year-end total assets were $1.5 million. Also, at year-end 2010, current liabilities were $500k, consisting of $200k in notes payable, $200k in accounts payable and $100k in accruals. Looking ahead at 2011, the company estimates that its assets must increase at the same rate as sales, its spontaneous liabilities will increase at the same rate as sales, its profit margin will be 5% and its payout ratio will be 60%. How large a sales increase can the company achieve without having to raise funds externally; that is, what is its self-supporting growth rate?

Question B- What would be the additional funds needed if the company's year-end 2010 assets had been $4 million? Assume that all other numbers, including sales and that the company is operating at full capacity. Why is this AFN different from the one you found? Is the company's "capital intensity" ratio the same or different?

Reference no: EM13725740

Questions Cloud

Analyze the behavior of the people in the workplace : Propose two (2) ways in which you will use the fundamental concepts from this course to analyze the behavior of the people in the workplace. Explain in detail how your proposal will help an organization navigate the challenges associated with hum..

Find the magnitude and direction of the current induced : A long straight solenoid of cross-sectional area 400cm^2 is wound with 10 turns of wire per centimeter, and the windings carry a current clockwise. A small ring of radius 5cm and resistance .3 Ohm is placed at the center of the solenoid. If th..

Initial employment offer process : Examine three (3) job aspects employers discuss during the initial employment offer process. Then, suggest the two (2) most important job aspects that you believe an organization should include in an employment offer.

Fields and charges in each circuit at the times mentioned : In the circuits shown in the diagrams above, an uncharged capacitor is connected in series with two batteries and either one lightbulb (circuit 1) or two lightbulbs identical to the first bulb(circuit 2). In circuit 1, the lightbulb stays lit ..

The company''s capital intensity ratio : What would be the additional funds needed if the company's year-end 2010 assets had been $4 million? Assume that all other numbers, including sales and that the company is operating at full capacity. Why is this AFN different from the one you foun..

External or internal recruiting processes : Use the Internet to research companies that utilize either external or internal recruiting processes. Next, based on your research provide three (3) characteristics of a job where either external or internal recruitment would be ideal.

Legal regulations of conducting business overseas : Identifying the issues surrounding the motivation behind unethical or illegal business operations when the consequences are properly documented

What the company did well and what struggles they faced : Company history, what the company did well, what struggles they faced, any awards they have won (if any), innovations they have created, standards they set, records they may have broken, regulations they were required to adhere to, competitors lik..

Explain the skills and assets of this group : Skills and assets of this group. Liabilities of this group. Early settlement patterns of the group. Occupations in which this group was concentrated.

User Account

All Pages