correct answer asap RETRO MACHINE, INC.Balance Sheet as of December 31, 2020AssetsLiabilities and Owners' EquityCurrent assetsCurrent liabilities$ 21,040$ 55,20014,400CashAccounts payableNotes payableAccounts receivable43,980Inventory95,960Total$ 69,600Total$160,980 Long-term debt$ 134,000Owners' equityCommon stock and paid-in s 116.500surplusRetained earningsFixed assetsNet plant andequipment$427,000267,880Total$384,380Total liabilities and owners'Total assets$587,980$587,980equityIf the firm is operating at full capacity and no new debt or equity is issued, what is theexternal financing needed to support the 25 percent growth rate in sales? (Do not roundintermediate calculations.)EFN The most recent financial statements for Retro Machine, Inc., follow. Sales for 2021 areprojected to grow by 25 percent. Interest expense will remain constant; the tax rate andthe dividend payout rate will also remain constant. Costs, other expenses, currentassets, fixed assets, and accounts payable increase spontaneously with sales.RETRO MACHINE, INC.2020 Income Statement$ 751,000586,00022,000SalesCostsOther expensesEarnings before interestand taxes$ 143,000Interest paid18,000$ 125,00028,750Taxable incomeTaxes (23%)Net income$ 96,250Dividends$29,838Addition to retained66,412earnings

Name: correct answer asap RETRO MACHINE, INC.Balance Sheet as of December 31
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Description: correct answer asap RETRO MACHINE, INC.Balance Sheet as of December 31, 2020AssetsLiabilities and Owners' EquityCurrent assetsCurrent liabilities$ 21,040$ 55,20014,400CashAccounts payableNotes payableAccounts receivable43,980Inventory95,960Total$ 69,

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Balance Sheet as of December 31, 2020 Assets Liabilities and Owners' Equity Current liabilities Current assets Cash Accounts receivable $ 21,040 43,980 Accounts payable Notes payable $ 55,200 14,400 Inventory 95,960 Total $ 69,600 Total $160,980 Long-term debt $ 134,000

Balance Sheet as of December 31, 2020 Assets Liabilities and Owners' Equity Current liabilities Current assets Cash Accounts receivable $ 21,040 43,980 Accounts payable Notes payable $ 55,200 14,400 Inventory 95,960 Total $ 69,600 Total $160,980 Long-term debt $ 134,000

Fundamentals Of Financial Management, Concise Edition (mindtap Course List)

10th Edition

ISBN:9781337902571

Author:Eugene F. Brigham, Joel F. Houston

Publisher:Eugene F. Brigham, Joel F. Houston

Chapter16: Financial Planning And Forecasting

Section: Chapter Questions

Problem 8P: LONG-TERM FINANCING NEEDED At year-end 2019, total assets for Arrington Inc. were 1.8 million and...

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LONG-TERM FINANCING NEEDED At year-end 2019, total assets for Arrington Inc. were 1.8 million and accounts payable were 450,000. Sales, which in 2019 were 3.0 million, are expected to increase by 25% in 2020. Total assets and accounts payable are proportional to sales, and that relationship will be maintained; that is, they will grow at the same rate as sales. Arrington typically uses no current liabilities other than accounts payable. Common stock amounted to 500,000 in 2019, and retained earnings were 475,000. Arrington plans to sell new common stock in the amount of 130,000. The firms profit margin on sates is 5%; 35% of earnings will be retained. a. What were Arringtons total liabilities in 2019? b. How much new long-term debt financing will be needed in 2020? (Hint: AFN - New stock = New long-term debt.)
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