What will next years net income be and assets be

Assignment Help Financial Management
Reference no: EM13729372

The firm earned $7,000 in sales last year while selling 20,000 units. Net Income that same year was $850. At the end of that same year, the Balance Sheet reflected $11,000 in total assets, having $3,500 in debt and $7,500 in equity accounts. The firm expects to sell 25% more units over the coming year, and they expect their profit margin to be the same as last year, and they expect that the Sales/Assets ratio will also remain constant.

What are next year’s sales expected to be (Dollars)?

What will next year’s Net Income be?

What will next year’s Assets be?

If next year’s Debt/Equity ratio is held constant, and no dividends are given out, and no stock or debt are retired, how much in new stock will need to be issued?

If next year’s Debt/Equity ratio is held constant, and no dividends are given out, and no stock or debt are retired, how much in new debt will need to be issued?

Reference no: EM13729372

Questions Cloud

What is cost of capital to firm for this project-hurdle rate : The risk free rate is 2.75%, measured by a long-term U.S. government bond. The total market return is expected to be between 12% over the foreseeable future. A biotech firm without production experience is considering making a drug in-house and profi..
Explain the alternative risk management approaches : Explain the alternative risk management approaches and their advantages and disadvantages for a medium-sized gold producer such as Mesa.
Create a value proposition statement or a tag line : Regarding the managerial implication of these analyses, create a value proposition statement or a tag line for the two stores-JCPenney and Nordstrom
What will next years assets be at the end of the year : The firm earned $7,000 in sales last year while selling 20,000 units. Net Income that same year was $850. At the end of that same year, the Balance Sheet reflected $11,000 in total assets, having $3,500 in debt and $7,500 in equity accounts. The firm..
What will next years net income be and assets be : The firm earned $7,000 in sales last year while selling 20,000 units. Net Income that same year was $850. At the end of that same year, the Balance Sheet reflected $11,000 in total assets, having $3,500 in debt and $7,500 in equity accounts. What are..
Summarize apples supplier responsibility information : Assignment: Challenges in the Global Business Environment- Summarize Apple's Supplier Responsibility information
Describe the operating cycle and the cash cycle : Describe the operating cycle and the cash cycle. What are the differences? What are days sales outstanding (DSO) and why is this calculation important to a business?
Free-cash-flows method and market-based methods : Discuss the approach you would recommend for performing a valuation of common equity using the dividends valuation method, the free-cash-flows method, and market-based methods. Compare and contrast the advantages and disadvantages of each method.
Dividends are expected to grow at a rate : Yang Corp. is growing quickly. Dividends are expected to grow at a rate of 31 percent for the next three years, with the growth rate falling off to a constant 6.6 percent thereafter.

Reviews

Write a Review

Financial Management Questions & Answers

  Fin pv of dividends cortez inc is expecting to pay out a

pv of dividends cortez inc. is expecting to pay out a dividend of 2.50 next year. after that it expects its dividend to

  Dollar annual cost of financing its receivables balance

Ocala Clinic's services result in $5,000 in daily billings to third-party payers. On average, it takes the clinic 50 days to collect its receivables. If the interest rate on loans needed to finance receivables (cost of carrying receivables) is 10 per..

  In working out your responses to the discussion question

in working out your responses to the discussion question you should choose examples from your own experience or find

  Find the holding period return

The prices for the white swan corporation for the first quarter of the last year are given below. Find the holding period return (percentage return) for March.

  Why should a firm invest its idle cash how to invest the

why should a firm invest its idle cash? how to invest the idle cash?whats credit management? whats the optimal credit

  What is the default risk premium on keys bonds

Keys Corporation's 5-year bonds yield 7.00%, and 5-year T-bonds yield 5.15%. The real risk-free rate is r* = 3.0%, the inflation premium for 5-year bonds is IP = 1.75%, the liquidity premium for Keys' bonds is LP = 0.75% versus zero for T-bonds, and ..

  Explain outcome requires the lowest monthly contribution

As their financial planner, provide some assistance with these calculations. The two primary options are listed below. Considering all previous information, which outcome requires the lowest monthly (end-of-month) contribution if they also require..

  What net investment is required to acquire the icx system

What net investment is required to acquire the ICX system and replace the old system and compute the annual net cash flows associated with the purchase of the ICX system.Fred and Frieda have always wanted to enter the blueberry business.

  Campc is a 5-year old chain of 12 medium-sized supermarkets

campc is a 5-year old chain of 12 medium-sized supermarkets. the supermarkets are targeting the middle- and top-income

  Offers an annual interest rate

Henry places the lump sum amount of $475 in a bank savings account today that offers an annual interest rate of 7.95% compounded 12 times per year. How much will Henry have in his account 9 years from today?

  What is the yield to maturity of bond

What is the yield to maturity of a 23-year bond that pas a coupon rate of 8.25% per year, has a $1,000 par value, and is currently priced at $1,298.05? Assume semi-annual coupon payments. Round the answer to two decimal places in percentage form.

  Is a warrant more similar to a call option or a put option

Company Z issued bonds with detachable warrants several years ago. Each warrant allows the holder to purchase one share of stock at $30 per share. The stock has a beta of 1.3. Calculate the exercise value of the warrants if the price of the underlyin..

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