What was total long-term debt and financing

Assignment Help Financial Accounting

Reference no: EM131217313

Long-Term Financing Needed

At year-end 2016, Wallace Landscaping’s total assets were $1.8 million and its accounts payable were $370,000. Sales, which in 2016 were $2.2 million, are expected to increase by 25% in 2017. Total assets and accounts payable are proportional to sales, and that relationship will be maintained. Wallace typically uses no current liabilities other than accounts payable. Common stock amounted to $460,000 in 2016, and retained earnings were $300,000. Wallace has arranged to sell $170,000 of new common stock in 2017 to meet some of its financing needs. The remainder of its financing needs will be met by issuing new long-term debt at the end of 2017. (Because the debt is added at the end of the year, there will be no additional interest expense due to the new debt.) Its profit margin on sales is 3%, and 60% of earnings will be paid out as dividends.

What was Wallace's total long-term debt in 2016? Do not round calculations.

What were Wallace's total liabilities in 2016? Do not round calculations.

How much new long-term debt financing will be needed in 2017? (Hint: AFN - New stock = New long-term debt.) Do not round calculations.

Reference no: EM131217313

Questions Cloud

Calculate the power factor at the terminal of the machine : A surface-mount permanent-magnet synchronous machine, which has the following ratings and parameters, is running as a motor in maximum torque per ampere operation mode at 800 r/min. The torque of the machine is 10 N-m, and the drive system is in t..

Example of a price discrimination for a good : Provide an example of a price discrimination for a good or service that you thought it to unfair. Do you still believe that the discrimination is unjustifiable?

Explain a time when you experienced effective communication : Describe a time when you experienced effective communication in a business environment. Discuss at least three reasons why you perceived the communication to be effective, and explain the resulting impact to the business.

National midland invest in the publishing facility : a. Should National Midland invest in the publishing facility? b. What assumptions might the marketing director have made to make the investment look worthwhile?

What was total long-term debt and financing : At year-end 2016, Wallace Landscaping’s total assets were $1.8 million and its accounts payable were $370,000. Sales, which in 2016 were $2.2 million, are expected to increase by 25% in 2017. Total assets and accounts payable are proportional to sale..

How strong organizational culture is at your organization : Discuss how strong the organizational culture is at your organization. To what extent is the organization's culture shared by employees and managers?

Compare tax rates before and after retirement : Equation 3.9 indicates that the choice as to whether to convert from a deductible IRA into a Roth IRA when the taxpayer expects his future tax rate to decline depends on the relative magnitude of the taxpayer’s current and future tax rates t0 and tn,..

Consumer utility function : a) Set y = 1 and graph the marginal utility of x; put marginal utility on the vertical axis and x on the horizontal axis. Your graph does not have to be perfect, but it should have the correct shape.

Describe how the federal system of government works : Discuss either two civil liberties or two civil rights events (past or current) that have influenced a sense of social responsibility in the American government today. Explain how the federal system of government works.

User Account

All Pages