What will be the? firm''s need for discretionary? financing

Assignment Help Financial Management

Reference no: EM131856753

?(Forecasting discretionary financing needs?) Fishing Charter Inc. estimates that it invests $0.35 in assets for each dollar of new sales.? However, $0.04 in profits are produced by each dollar of additional? sales, of which $0.01 can be reinvested in the firm. If sales rise by $600,000 next year from their current level of $6 million, and the ratio of spontaneous liabilities to sales is 6 percent, what will be the? firm's need for discretionary? financing? (Hint?: In this situation you do not know what the? firm's existing level of assets? is, nor do you know how those assets have been financed.? Thus, you must estimate the change in financing needs and match this change with the expected changes in spontaneous? liabilities, retained? earnings, and other sources of discretionary? financing.)

The? firm's need for discretionary financing is $ (Round to the nearest? dollar.)

Reference no: EM131856753

Questions Cloud

What is the intrinsic value of one sydney bank share : Sydney Bank has just paid an annual dividend of $0.40 per share. what is the intrinsic value of one Sydney Bank share?

Describe the music and subject matter of the given work : Select one composition by Tchaikovsky that you enjoy. Describe the music and subject matter of that work and explain why you enjoy it.

What kind of deal did the player snag : If the appropriate interest rate is 10 percent, what kind of deal did the player snag? Assume all payments are paid at the end of the year.

Discuss the vital aspect of social work : Post an explanation of whether you think advocacy is a vital aspect of social work. Be sure to reference this week's readings to support your position.

What will be the? firm''s need for discretionary? financing : Forecasting discretionary financing needs?. what will be the? firm's need for discretionary? financing?

Explains the stages of development : Write an essay (1,2 paragraphs) in your own words which explains the stages of development of 1) air-mass thunderstorms and 2) tornadoes.

Which activities would you recommend tjp perform : After a careful review of the case study details, which additional activities would you recommend TJP perform to implement the strategic plan and why?

Calculate the resulting temperature increase : Calculate the resulting temperature increase of the air if 50% of the moisture condenses out.

Horizontal variations in air pressure : Describe how each of the following is important to horizontal variations in air pressure.

User Account

All Pages