Solution-Total long-term debt and total liabilities

Total long-term debt and total liabilities

Assignment Help Finance Basics

Reference no: EM131044467

At year-end 2013, Wallace Landscaping's total assets were $2.17M and its accounts payable were $560k. Sales, which in 2013 were $3.5M, are expected to increase by 35% in 2014.

Total assets and accounts payable and propertional to sales, and that relationship will be maintained. Wallace typically uses to current liabilities other than accounts payable.

Common stock amount to $625K in 2013, and retained earnings were $395K. Wallace has arrange to sell $195K of new common stock in $2014 to meet some of the financial goals.

The remainder of its financial needs will be met by issuing new long-term debt at the end of 2014. (Because the debt is added as the end of the year, there will be no interest expense to the new debt?. Its net profit margin on sales is 5% and 45% earnings will be paid out as dividends.

a. What were Wallace's total long-term debt and total liabilities in 2013?

b. How much new long-term debt financing will be needed in 2014? (Hint: AFN - New stock = New long-term debt)

Reference no: EM131044467

Questions Cloud

Learned from mistakes on the finance job : Describe a typical work week for finance position? What challenges are you looking for in this finance position? What have you learned from mistakes on the finance job?

Calculate the multiplicities of proton signals : From the structure shows below, calculate the multiplicities of proton signals at positions labeled a, b and c

Watsuji dialectic of double negation : What does Watsuji mean when he says, "we have discovered ourselves in climate"? What does he mean when he says, "climate does not exist apart from history, nor history apart from climate?"

Determining the outstanding stock : Assume the following for aol corp for 2012. cash flow from assets is minus $660; interest expense = $460; dividends paid = $1280 and long term debt is unchanged from 2011. What did aol corp do with regard to its outstanding stock during 2012

Total long-term debt and total liabilities : a. What were Wallace's total long-term debt and total liabilities in 2013? b. How much new long-term debt financing will be needed in 2014? (Hint: AFN - New stock = New long-term debt)

How first account of creation related to babylonian creation : According to Coogan, how is the first account of creation related to the Babylonian creation narrative Enuma Elish? What purposes do the changes serve?

What is respiratory therapy and what they do : What is respiratory therapy and what they do? How to become a respiratory therapist? this includes, education, licenses, certifications, regitrations,

What is the regulatory definition of cost or pricing data : ASCM 627 - What is the regulatory definition of cost or pricing data - (You should not need more than a single sentence to answer this question - What is the manner in which Contracting Officers receive such power?

The catholic intellectual tradition : The topic must be as specific as possible in terms of a moral issue or moral situation. The context must be very clearly described and wherever possible data regarding the situation should be given. A focus on a particular person, people group, or..

User Account

All Pages

Total long-term debt and total liabilities

Reference no: EM131044467

Reference no: EM131044467

Questions Cloud

Reviews

Write a Review

Finance Basics Questions & Answers

Financial reporting and analysis

A report on financial accounting

Describe the types of financial ratios

Differences between sole proprietorship and corporation

Prepare a cash budget statement

What are the implied interest rates

State pricing theory and no-arbitrage pricing theory

Small business administration

Effect of financial leverage

Evaluate the basis for the payment to the lender

Importance of opps, ipps, mpfs and dmepos

Time value of money

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT