Assets Liabilities Stock Year One $50,000 $25,000 $10,000 $15,000 Retained Earnings Suppose in year two the company plans to grow assets by 70%, liabilities are limited to 30% of assets, expected net income is $10,392, and dividends are $1,791. What is the projected total for retained. earnings in year two?

Assets Liabilities Stock Year One $50,000 $25,000 $10,000 $15,000 Retained Earnings Suppose in year two the company plans to grow assets by 70%, liabilities are limited to 30% of assets, expected net income is $10,392, and dividends are $1,791. What is the projected total for retained. earnings in year two?

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter16: Financial Planning And Control

Section: Chapter Questions

Problem 2PROB

See similar textbooks

Similar questions

a. (1) Current year working capital. 1,090,000 Current position analysis The following data were taken from the balance sheet of Nilo Company at the end of two recent fiscal years: Current Year Previous Year Current assets: Cash 391,000 300,000 Marketable securities 515,000 354,000 Accounts and notes receivable (net) 634,000 426,000 Inventories 368,000 222,000 Prepaid expenses 182,000 138,000 Total current assets 2,090,000 1,440,000 Current liabilities: Accounts and notes payable (short-term) 725,000 600,000 Accrued liabilities 275,000 300,000 Total current liabilities 1,000,000 900,000 a. Determine for each year (1) the working capital, (2) the current ratio, and (3) the quick ratio. Round ratios to one decimal place. b. What conclusions can be drawn from these data as to the companys ability to meet its currently maturing debts?
EXCESS CAPACITY Krogh Lumbers 2019 financial statements are shown here. Krogh Lumber: Balance Sheet as of December 31, 2019 (thousands of dollars) Krogh Lumber: Income Statement for December 31, 2019 (thousands of dollars) a. Assume that the company was operating at full capacity in 2019 with regard to all items except fixed assets; fixed assets in 2019 were being utilized to only 75% of capacity. By what percentage could 2020 sales increase over 2019 sales without the need for an increase in fixed assets? b. Now suppose 2020 sales increase by 25% over 2019 sales. Assume that Krogh cannot sell any fixed assets. All assets other than fixed assets will grow at the same rate as sales; however, after reviewing industry averages, the firm would like to reduce its operating costs/sales ratio to 82% and increase its total liabilities-to-assets ratio to 42%. The firm will maintain its 60% dividend payout ratio, and it currently has 1 million shares outstanding. The firm plans to raise 35% of its 2020 forecasted interest-bearing debt as notes payable, and it will issue bonds for the remainder. The firm forecasts that its before-tax cost of debt (which includes both short- and long-term debt) is 11%. Any stock issuances or repurchases will be made at the firms current stock price of 40. Develop Kroghs projected financial statements like those shown in Table 16.2. What are the balances of notes payable, bonds, common stock, and retained earnings?
Sales Increase Maggies Muffins Bakery generated 5 million in sales during 2018, and its year-end total assets were 2.5 million. Also, at year-end 2018, current liabilities were 1 million, consisting of 300,000 of notes payable, 500,000 of accounts payable, and 200,000 of accruals. Looking ahead to 2019, the company estimates that its assets must increase at the same rate as sales, its spontaneous liabilities will increase at the same rate as sales, its profit margin will be 7%, and its payout ratio will be 80%. How large a sales increase can the company achieve without having to raise funds externallythat is, what is its self-supporting growth rate?
Year One Assets $50,000 Liabilities $25,000 Stock $10,000 Retained Earnings $15,000 Suppose in year two the company plans to grow assets by 60%, liabilities are limited to 30% of assets, expected net income is 9,943, and dividends are $1,475. How much additional stock will the company need to raise?
A company reports the following for the prior year: $1.6 million in sales $1 million in total assets $160, 000 in net income $800, 000 in equity (at the beginning of this prior year) $520, 000 in current assets $480, 000 in fixed assets $48, 000 ir accounts payable $32,000 in accrued liabilities The company projects that the sales will grow at 30 % . Calculate the AFN or this company assuming 80% retention ratio. a. $134,425 b. $127,650 c. $109,600 d. $76,950
Question / Money 10,000,000, retained earnings 5,000,000, millions of financial reserves 4,000,000, financial loans, 250,000 and creditors 2,000,000, 1,000,000 payment notes, what is the amount of equity at the end of the year
Assets = Liabilities + Equity Beginning $300,000 = $200,000 + $100,000 Change 80,000 = 50,000 + 30,000 Ending = + At the beginning of the year, Addison Company’s assets are $300,000 and its equity is $100,000. During the year, assets increase $80,000 and liabilities increase $50,000. What is the equity at year-end? I do not know how to solve the last row where it says "Ending". How do I even begin to solve this?
50. Jimin Corp. is preparing the interim financial statements for the quarter ended March 31, 2022. Sales during the quarter is P5,000,000. The variable expense is 20% based on sales. The other expense of P2,100,000 included P1,500,000 an advertisement expense for one-year (incurred unevenly in the year) and depreciation expense of P600,000 for 2022 for an equipment that was available for use on March 1, 2022. How much is the total expense reported as of March 31, 2022?
ISSUE $50,000 (initial capital) + $30,000 (new capital contribution) + X (profit or loss for the period) = $150,000 (assets) - $68,000 (liabilities) => X = ¿¿¿$38,000??? To me this result is $2,000 of utility by ASSETS = LIABILITIES = $150,000 (double entry accounting principle). Please check it. I don´t understand your calculation
18) Berman & Jaccor Corporation's current sales and partial balance sheet are shown below. This year Sales $ 1,000 Balance Sheet: Assets Cash $ 200 Short-term investments $ 125 Accounts receivable $ 150 Inventories $ 250 Total current assets $ 725 Net fixed assets $ 500 Total assets $ 1,225 Sales are expected to grow by 10% next year. Assuming no change in operations from this year to next year, what are the projected total operating assets? Do not round intermediate calculations. Round your answer to the nearest dollar. $
Sales $ 1,000 Balance Sheet: Assets Cash $ 100 Short-term investments $ 85 Accounts receivable $ 300 Inventories $ 100 Total current assets $ 585 Net fixed assets $ 450 Total assets $ 1,035 Sales are expected to grow by 10% next year. Assuming no change in operations from this year to next year, what are the projected total operating assets?
Question 1 At year-end 2018, Marvel Company total assets were $4.5 million, and its accounts payable were $850,000. Sales, which in 2018 were $5.5 million, are expected to increase by 25% in 2019. Total assets and accounts payable are proportional to sales, and that relationship will be maintained. Marvel typically uses no current liabilities other than accounts payable. Common stock amounted to $ 2.25 million in 2018, and retained earnings were $150,000. Marvel has arranged to sell $25,000 of new common stock in 2019 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 2019. (Because the debt is added at the end of the year, there will be no additional interest expense due to the new debt.) Its net profit margin on sales is 2.5%, and 55% of earnings will be paid out as dividends. b. How much new long-term debt financing will be needed in 2019? (Hint: AFN – New stock = New long-term debt.)