What was bertins total debt in 2006

Assignment Help Business Management

Reference no: EM131376021

At year-end 2006, total assets for Bertin Inc. were $1.2 million and accounts payable were $375,000. Sales, which in 2006 were $2.5 million, are expected to increase by 25 percent in 2007. Total assets and accounts payable are proportional to sales and that relationship will be maintained. Bertin typically uses no current liabilities other than accounts payable. Common stock amounted to $425,000 in 2006, and retained earnings were $295,000. Bertin plans to sell new common stock in the amount of $75,000. The firm's profit margin on sales is 6 percent; 40 percent of earnings will be paid out as dividends.

a. What was Bertin's total debt in 2006?

b. How much new, long-term debt financing will be needed in 2007? (Hint: AFN - New stock = New long-term debt.) Do not consider any financing feedback effects.

Reference no: EM131376021

Questions Cloud

Supply chain depends on the framework of the organization : The success of any supply chain depends on the framework of the organization. The framework of an organization identifies strategic challenges that were critical to the organization’s existence in the past and are also critical to its future growth. ..

Historical research have for current firefighter safety : What benefits can historical research have for current firefighter safety? What factors make fire and emergency services research difficult?

Where should the disconnect switch for furnace be located : An electric furnace has a minimum circuit ampacity rating of 50 A. What is the minimum current rating for the disconnect switch?

Department of social services represents a large portion : The Department of Social Services represents a large portion of your county's budget and total number of employees. The job eligibility technician is responsible for all client contact, policy interpretation, and financial decision related to seve..

What was bertins total debt in 2006 : At year-end 2006, total assets for Bertin Inc. were $1.2 million and accounts payable were $375,000. - What was Bertin's total debt in 2006?- How much new, long-term debt financing will be needed in 2007?

Describe the power types from the french and raven power : It has been stated that different industries and organizational differences influence which motivational techniques and theories are most effective. It has also been stated that situational factors, such as the type of power exerted, can influence..

Excellent and thorough customer service : "The simplest (and often most overlooked) way to encourage customer loyalty is through excellent and thorough customer service. From the moment customers make contact with your business or store--whether it is by telephone, through your web site, ..

How is overcurrent protection sized for an electric furnace : Discuss the operational checks that should be made on a new electric furnace installation.

What is booths additional funds needed for the coming year : Booth's after-tax profit margin is forecasted to be 5 percent, and its payout ratio will be 60 percent. What is Booth's additional funds needed (AFN) for the coming year?

User Account

All Pages