Reference no: EM131187936
Long-Term Financing Needed
At year-end 2013, Wallace Landscaping’s total assets were $1.9 million and its accounts payable were $435,000. Sales, which in 2013 were $2.0 million, are expected to increase by 25% in 2014. 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 $420,000 in 2013, and retained earnings were $330,000. Wallace has arranged to sell $160,000 of new common stock in 2014 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 2014. (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 6%, and 55% of earnings will be paid out as dividends.
What was Wallace's total long-term debt in 2013? Round your answer to the nearest dollar.
$
What were Wallace's total liabilities in 2013? Round your answer to the nearest dollar.
$
How much new long-term debt financing will be needed in 2014? (Hint: AFN - New stock = New long-term debt.) Round your answer to the nearest dollar.
$
|
Calculate gross patient revenue
: Determine the amount of net operating income that would result for a hospital whose payer mix and expected volume (100 cases) is as follows: Calculate gross patient revenue, deductions from gross patient revenue, net patient revenue, total expenses, ..
|
|
Calculate the retail price for sports fitness basket balls
: Randy Todd, marketing manager for New Waves Sports Products, Inc. (NWSP), is thinking about how changes taking place among retailers in his channel might impact his strategy. Calculate the retail price of the basketball for Kings sporting Goods. Calc..
|
|
Prepare the amortization schedule for the loan
: Bill has $25,000 in an investment account earning 6 percent per year. Bill decides to purchase a new car with a sticker price of $25,000. The car dealer offers Bill either $2,000 cash back or 2% financing for 5 years. Calculate the monthly payment re..
|
|
Define revenue and time value of money
: Define fee for service, discounted fee for service, charity services, and payment before service is delivered. Future value and present value concepts are extremely important to the role of financial management and impact cash flow. The response and ..
|
|
What were total liabilities and total long-term debt
: At year-end 2013, Wallace Landscaping’s total assets were $1.9 million and its accounts payable were $435,000. Sales, which in 2013 were $2.0 million, are expected to increase by 25% in 2014. Total assets and accounts payable are proportional to sale..
|
|
Leveraged and unleveraged capital structure
: Kelso Electric is debating between a leveraged and an unleveraged capital structure. The all equity capital structure would consist of 22,000 shares of stock. The debt and equity option would consist of 14,000 shares of stock plus $240,000 of debt wi..
|
|
What is its self-supporting growth rate
: Maggie's Muffins, Inc., generated $2,000,000 in sales during 2013, and its year-end total assets were $1,700,000. Also, at year-end 2013, current liabilities were $1,000,000, consisting of $300,000 of notes payable, $500,000 of accounts payable, and ..
|
|
Sales are expected to increase
: Broussard Skateboard's sales are expected to increase by 15% from $8.2 million in 2013 to $9.43 million in 2014. Its assets totaled $3 million at the end of 2013. Broussard is already at full capacity, so its assets must grow at the same rate as proj..
|
|
Substantially outperform bond investments
: We have seen that over long periods stock investments have tended to substantially outperform bond investments. However, it is not at all uncommon to observe investors with long horizons holding their investments entirely in bonds. Are such investors..
|