What were arrington total liabilities in 2016

Assignment Help Finance Basics
Reference no: EM132169040

At year-end 2016, total assets for Arrington Inc. were $1.5 million and accounts payable were $315,000. Sales, which in 2016 were $2.7 million, are expected to increase by 30% in 2017. Total assets and accounts payable are proportional to sales, and that relationship will be maintained; that is, they will grow at the same rate as sales. Arrington typically uses no current liabilities other than accounts payable. Common stock amounted to $490,000 in 2016, and retained earnings were $265,000. Arrington plans to sell new common stock in the amount of $120,000. The firm's profit margin on sales is 4%; 65% of earnings will be retained.

  1. What were Arrington's total liabilities in 2016?
  2. How much new long-term debt financing will be needed in 2017? Write out your answer completely. (Hint: AFN - New stock = New long-term debt.)

Reference no: EM132169040

Questions Cloud

Describe the layout of cuzco and its architecture : Describe the layout of Cuzco and its architecture (including some of its main structures), and explain how it was connected to the Inca empire at large.
Value of long term debt intrinsic value : Is the value of long term debt intrinsic value or book value when the debt is an annual coupon bond?
Explain the origins and context of the example : This week you will take a digital field trip to view the Ancient Greece Architecture Gallery at the Metropolitan Museum of Art. Located in New York.
How did scientific management of industrial processes change : How did scientific management of industrial processes change the nature of work for the average laborer? How did Herbert Hoover's belief in limited government
What were arrington total liabilities in 2016 : How much new long-term debt financing will be needed in 2017? Write out your answer completely. (Hint: AFN - New stock = New long-term debt.)
Identify new concept and theory about globalization : In your response paper, identify an important new concept, theory, or insight about globalization from Steger Chap. 5 "Cultural dimension of globalization".
Dividends and earnings are expected : A firm recently reported earnings per share of $1.70 at its annual shareholders meeting. The firm has a price/earnings multiple of 10 and a dividend payout
What are the limitations of online activism : View the videos provided in this module. Both address the impact, advantages, and limitations of online activism. In no fewer than 250 words.
What price will the bond trade? for : If the yield to maturity of the bond rises to 7.33 % (APR with semiannual? compounding), what price will the bond trade? for?

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd