Based on the data below, this company has lost funds for the posted years and should forecast as such. This organization should plan cuts. Do you agree? Why? What would you do if you are the leadership? Based on the data below, this company has lost funds for the posted years and should forecast as such. Thisorganization should plan cuts. Do you agree? Why? What would you do if you are the leadership?Information by geographic area (in millions):Fiscal Year EndedNet revenues:United StatesChinaOther countriesTotalLong-lived assets:United StatesChinaOther countriesTotalSSSOct 3, 202120,377.8 S3,674.85,008.029,060.6 S12,819.4 $4,673.84,143.021,636.2 SSep 27, 202016,879.8 $2,582.84,055.423,518.0 $12,624.9 $4,425.64,517.621,568.1$Sep 29, 201918,622.72,872.05,013.926,508.67,330.23,279.82,955.713,565.7

The question asks if this company has lost funds based on 3 years of revenue and asset data, and if…

Based on the data below, this company has lost funds for the posted years and should forecast as such. This organization should plan cuts. Do you agree? Why? What would you do if you are the leadership?

Based on the data below, this company has lost funds for the posted years and should forecast as such. This organization should plan cuts. Do you agree? Why? What would you do if you are the leadership?

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter9: Corporate Valuation And Financial Planning

Section: Chapter Questions

Problem 6P: Additional Funds Needed The Booth Company’s sales are forecasted to double from $1,000 in 2018 to...

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Additional Funds Needed The Booth Company’s sales are forecasted to double from $1,000 in 2018 to $2,000 in 2019. Here is the December 31, 2018, balance sheet: Booth’s fixed assets were used to only 50% of capacity during 2018, but its current assets were at their proper levels in relation to sales. All assets except fixed assets must increase at the same rate as sales, and fixed assets would also have to increase at the same rate if the current excess capacity did not exist. Booth’s after-tax profit margin is forecasted to be 5% and its payout ratio to be 60%. What is Booth’s additional funds needed (AFN) for the coming year?
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The following tables contain financial statements for Dynastatics Corporation. Although the company has not been growing, it now plans to expand and will increase net fixed assets (i.e., assets net of depreciation) by $270,000 per year for the next 4 years, and it forecasts that the ratio of revenues to total assets will remain at 1.50. Annual depreciation is 20% of net fixed assets at the beginning of the year. Fixed costs are expected to remain at $70 and variable costs at 70% of revenue. The company’s policy is to pay out one-half of net income as dividends and to maintain a book debt ratio of 20% of total capital. INCOME STATEMENT, 2019(Figures in $ thousands) Revenue $ 1,800 Fixed costs 70 Variable costs (70% of revenue) 1,260 Depreciation 216 Interest (6% of beginning-of-year debt) 18 Taxable income 236 Taxes (at 35%) 83 Net income $ 153 Dividends $ 77 Addition to retained…
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