(a)What is the significance of the internal growth rate? The sustainablegrowthrate?(b)Assume that Angostura is currently operating at fullcapacity.-All costs/expenses/income and net working capital vary directly withsales/revenue.-Interest Expenses will remain unchanged.-The tax rate and the dividend pay-out ratiowill remainconstant.How much additional debt is required, if any, if no new equity is raised and sales/revenue are projected to increaseby10%?(20Marks)NOTE:-Tax Rate must be calculated (2 decimalplaces)-Pro forma statements are to be prepared (Round all figures to the nearestdollar) (c)Based on your answer from (b) above, how can Angostura obtain the external financing needed (if necessary), or, if the company has excess financing, how can they utilize this? Mike Barry is the supervisor of Accounting Services, which provides services for downtownColleges. Five customers submitted their orders at the beginning of each week. Specificscheduling data are as follows:Jobs (inProcessing Due Date(DaysHence)order ofTimearrival)(Days)A6.8.C6.4.6.10All jobs require the use of the only printer available; Barry must decide on the processingsequence for the five orders. The evaluation criterion is minimum flow time.From the list below recommend the best rule to sequence the jobs.i. FCFSSOTi.ii.EDDiv.STRDE Angostura Holdings LimitedIncome StatementFor the Years ended Dec 2018 and 201920192018s'00000,$SalesCost of Sales847,200783,692Gross Profit-429,723-392,209Distribution Costs417.477391,483-140,205Admin ExpensesOther Operating Expenses-145,010-88,713-69,935Interest Income-4,304-2,487Other Comprehensive Income8,6485,2019.434-1,337Earnings Before Interest and TaxesInterest Expense202,337177,915-559-312Taxable Income201,778177,603Taxation-59,935-47,685Net Income141,843129,918Dividends-57,744Addition to Retained Earnings84,099Angostura Holdings LimitedStatement of Financial Position (Abridged)For the period ending Dec, 31 20192019201820192018('000s)('000s)("000s)("000s)LIABILITIES ANDASSETSEQUITYCurrent AssetsCurrent LiabilitiesInventories253,769245,491 Accounts PayablesOther Current107 29980,929Accounts Receivables185,870145.742 Liabilities165724098Other Current Assets411461318475123,87185.027Cash & Equivalents103,151119,075 Non-current Liabilities77,33775,705954,251828,783 Total Liabilities201,208160.732Non-Current Assets,387,117 EquityShare CapitalNet388.458221588219354Retained Earnings919.913835,814Total Equity1,141.5011,055,168TOTAL ASSETS1,342,7091,215.900 TOTAL LIAB. & EQUITY1,342.7091,215.900

“Since you have asked multiple questions, we will solve the first question for you. If you want any…

(a)What is the significance of the internal growth rate? The sustainablegrowthrate? (b)Assume that Angostura is currently operating at fullcapacity. -All costs/expenses/income and net working capital vary directly withsales/revenue. -Interest Expenses will remain unchanged. -The tax rate and the dividend pay-out ratiowill remainconstant.How much additional debt is required, if any, if no new equity is raised and sales/revenue are projected to increaseby10%?(20Marks) NOTE:-Tax Rate must be calculated (2 decimalplaces) -Pro forma statements are to be prepared (Round all figures to the nearestdollar) (c)Based on your answer from (b) above, how can Angostura obtain the external financing needed (if necessary), or, if the company has excess financing, how can they utilize this?

(a)What is the significance of the internal growth rate? The sustainablegrowthrate? (b)Assume that Angostura is currently operating at fullcapacity. -All costs/expenses/income and net working capital vary directly withsales/revenue. -Interest Expenses will remain unchanged. -The tax rate and the dividend pay-out ratiowill remainconstant.How much additional debt is required, if any, if no new equity is raised and sales/revenue are projected to increaseby10%?(20Marks) NOTE:-Tax Rate must be calculated (2 decimalplaces) -Pro forma statements are to be prepared (Round all figures to the nearestdollar) (c)Based on your answer from (b) above, how can Angostura obtain the external financing needed (if necessary), or, if the company has excess financing, how can they utilize this?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter22: Accounting For Changes And Errors.

Section: Chapter Questions

Problem 4RE: Refer to RE22-2. Assume Heller Company had sales revenue of 510,000 in 2019 and 650,000 in 2020....

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