User Account

All Pages

Will the firm need external funds

Assignment Help Corporate Finance
Reference no: EM131310346

Assignment

BBP, Inc., with sales of $500,000, has the following balance sheet:

BBP, Incorporated Balance Sheet as of 12/31/X0

Assets Liabilities

Cash $ 25,000 Accounts Payable $ 15,000

Accounts Receivable $ 50,000 Accruals $ 20,000

Inventory $ 75,000 Notes Payable $ 0

Current Assets $150,000 Current Liabilities $ 85,000

Fixed Assets $200,000 Common Stock $100,000

Retained Earnings $165,000

Total Assets $350,000 Total Liabilities/Equity $350,000

The firm earns 15% on sales and distributes 25% of its earnings. Using the percent of sales method, forecast the new balance sheet for sales of $600,000 assuming that cash changes with sales and that the firm is not operating at capacity. Will the firm need external; funds? Would your answer be different if the firm distributed all of its earnings?

Reference no: EM131310346

Questions Cloud

How performance cycle variance can be controlled : Discuss uncertainty as it relates to the overall logistical performance cycle. Discuss and illustrate how performance cycle variance can be controlled.
Create a class named order that performs order processing : Create a class named Order that performs order processing of a single item. Create a subclass named ShippedOrder that overrides computePrice() by adding a shipping and handling charge of $4.00.
Differences between transactional and relationship marketing : Explain the differences between transactional and relationship marketing. How do these differences lead to increasing emphasis on logistical performance in supply chain management?
Produce new file which contains the first and second fields : From the file download as above, produce a new file which contains the first and second fields, plus the fourth to the sixth fields. So, the files contains the following: Note that fields 1 and 2 are on the left and followed by the fields 4, 5 and ..
Will the firm need external funds : Using the percent of sales method, forecast the new balance sheet for sales of $600,000 assuming that cash changes with sales and that the firm is not operating at capacity. Will the firm need external; funds?
How can a company attempt to eliminate the knowledge gap : Which of the gaps in Figure do you think represents the major problem for most firms? How can a company attempt to eliminate the knowledge gap? The communications gap?
Read the threads of your classmates and the articles : Read the threads of your classmates and the articles which are referenced (this is why it is imperative that the articles be accessible via working URL links). Expect to spend some time each day reviewing all threads and replies, even those in whi..
Modify a classical cryptosystem to provide nonrepudiation : The ciphertext corresponds to the plaintext enciphered under the secret key that Alice and Bob share. Explain why this does not satisfy the requirements of nonrepudiation of origin. How might you modify a classical cryptosystem to provide nonrepud..
Write a method that to implement the enhanced bubble sort : Write a method that to implement the enhanced bubble sort that sorts in ascending order. Write the insertion sort, changing the insertion logic to sort in descending order and use it for sortDecreasing method. (p. 523).

Reviews

Write a Review

Corporate Finance Questions & Answers

  You plan to purchase a new gas chromatograph for your

you plan to purchase a new gas chromatograph for your companys food-product development lab. the machine will cost

  Calculation of issue value of bond considering time value

calculation of issue value of bond considering time value of moneywilson company will issue 300000000 of 7 1000 par

  Risk management and hedging strategy using options

Make a presentation to your board members about how you can use the Options market for Portfolio insurance with specific emphasis on its costs and benefits.

  Distinguish between the different types of costs that were

distinguish between the different types of costs that were examined this week such as sunk costs opportunity costs and

  What minimum rate of return

How could it have had a zero real rate of return and what minimum rate of return must the T-bill have earned to meet your requirement of a 2% real rate of return?

  What is and expected return and variance of a portfolio

What is and expected return and variance of a portfolio which is equally weighted in investments of each of the three stocks?

  Compute the net profit margin and total asset turnover

Compute the Net profit margin, Total asset turnover (ume year-end! assets), Return on assets (use year-end assets), Operating income margin and Return on operating assets (ume yearend assets).

  Carry out research through a website search into two major

carry out research through a website search into two major property companies with different approaches to managing

  Questions based on time value of money

Multiple choice questions based on time value of money - What is the net change in working capital from 2002 to 2003

  Calculate fund managers average

Calculate each fund manager's average "alpha" (?) (i.e. actual return minus expected return) over the 5-year holding period. Show graphically where these ? statistics would plot on the security market line (SML).

  Questions based on return on equity

How much must the assets be reduced to bring the TATO to the industry average and questions based on Return on equity

  Under the proposed system

Write a one-page memo to Furman outlining the cost factors that might increase, and those that might decrease, along with a brief explanation for each factor, under the proposed system.

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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