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Compute the new level of net income for the company. (Select] Compute the company's addition to retained earnings for the year. | Select ] Compute the new level of total assets required. (Select] Calculate the new level of current liabilities (Select] Compute the company's new level of retained earnings on the balance sheet ISelect] Calculate the level of Additional Funds Needed (AFN) to support the increase in sales.

Compute the new level of net income for the company. (Select] Compute the company's addition to retained earnings for the year. | Select ] Compute the new level of total assets required. (Select] Calculate the new level of current liabilities (Select] Compute the company's new level of retained earnings on the balance sheet ISelect] Calculate the level of Additional Funds Needed (AFN) to support the increase in sales.

Intermediate Financial Management (MindTap Course List)
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter21: Supply Chains And Working Capital Management
Section: Chapter Questions
Problem 13P: Payne Products had $1.6 million in sales revenues in the most recent year and expects sales growth...
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INCOME STATEMENT 2020 2019 NET REVENUES &SALES (100,000 UNITS) COST OF GOODS SOLD GROSS PROFIT FIXED OPERATING EXPENSES (pre depreciation) EBITDA Earnings before Intrest, Taxes, Dep & Amorit DEPRECIATION EXPENSE OPERATING INCOME (EBIT) INTEREST INCOME BEFORE TAXES (EBT) INCOME TAXES (40%) NET INCOME div 812,000 700,000 522,000 450,000 290,000 250,000 174,200 151,000 115,800 99,000 30,000 25,000 74,000 14,000 60,000 24,000 36,000 28,500 85,800 14,500 71,300 28,520 42,780 34,480 Retained Earnings 8,300 50,000 7,500 50,000 NUMBER OF SHARES OUTSTANDING Compute the new level of net income for the company. [ Select] Compute the company's addition to retained earnings for the year. [ Select] Compute the new level of total assets required. (Select] Calculate the new level of current liabilities (Select] Compute the company's new level of retained earnings on the balance sheet ISelect] Calculate the level of Additional Funds Needed (AFN) to support the increase in sales. ( Select]
Transcribed Image Text:INCOME STATEMENT 2020 2019 NET REVENUES &SALES (100,000 UNITS) COST OF GOODS SOLD GROSS PROFIT FIXED OPERATING EXPENSES (pre depreciation) EBITDA Earnings before Intrest, Taxes, Dep & Amorit DEPRECIATION EXPENSE OPERATING INCOME (EBIT) INTEREST INCOME BEFORE TAXES (EBT) INCOME TAXES (40%) NET INCOME div 812,000 700,000 522,000 450,000 290,000 250,000 174,200 151,000 115,800 99,000 30,000 25,000 74,000 14,000 60,000 24,000 36,000 28,500 85,800 14,500 71,300 28,520 42,780 34,480 Retained Earnings 8,300 50,000 7,500 50,000 NUMBER OF SHARES OUTSTANDING Compute the new level of net income for the company. [ Select] Compute the company's addition to retained earnings for the year. [ Select] Compute the new level of total assets required. (Select] Calculate the new level of current liabilities (Select] Compute the company's new level of retained earnings on the balance sheet ISelect] Calculate the level of Additional Funds Needed (AFN) to support the increase in sales. ( Select]
Farnsbeck Inc. is forecasting a 15% increase in sales next year. Assume the company is operating at 100% capacity. The company has 50,000 shares of common stock outstanding. The firm will pay out 60% of its Net Income in dividends and move 40% into retained earnings Based on the Income statement and balance sheet below answer the following questions. ASSETS 2020 2019 ASSETS 2020 2019 CASH AND MARKETABLE SECURITIES 29,000 25,000 116,000 100,000 145,000 125,000 290,000 250,000 362,000 350,000| 130,000 100,000 232,000 250,000 TOTAL ASSETS 522,000 500,000 ACCOUNTS RECEIVABLE INVENTORIES CURRENT ASSETS GROSS PLANT AND EQUIPMENT LESS: ACCUMULATED DEPRECIATION NET FIXED ASSETS LIABILITIES AND EQUITY ACCOUNTS PAYABLE ACCRURALS NOTES PAYABLE 90,480 34,800 25,420 78,000 30,000 34,000 CURRENT LAIBILITIES 150,700 145,000 TOTAL LIABILITIES 295,700 150,000 76,300 142,000 140,000 282,000 150,000 LONG TERM DEBT COMMON STOCK ($1.00 par) RETAINED EARNINGS 68,000 218,000 TOTAL OWNER'S EQUITY 226,300 TOTAL LIABILITIES AND EQUITY 522,000 500,000
Transcribed Image Text:Farnsbeck Inc. is forecasting a 15% increase in sales next year. Assume the company is operating at 100% capacity. The company has 50,000 shares of common stock outstanding. The firm will pay out 60% of its Net Income in dividends and move 40% into retained earnings Based on the Income statement and balance sheet below answer the following questions. ASSETS 2020 2019 ASSETS 2020 2019 CASH AND MARKETABLE SECURITIES 29,000 25,000 116,000 100,000 145,000 125,000 290,000 250,000 362,000 350,000| 130,000 100,000 232,000 250,000 TOTAL ASSETS 522,000 500,000 ACCOUNTS RECEIVABLE INVENTORIES CURRENT ASSETS GROSS PLANT AND EQUIPMENT LESS: ACCUMULATED DEPRECIATION NET FIXED ASSETS LIABILITIES AND EQUITY ACCOUNTS PAYABLE ACCRURALS NOTES PAYABLE 90,480 34,800 25,420 78,000 30,000 34,000 CURRENT LAIBILITIES 150,700 145,000 TOTAL LIABILITIES 295,700 150,000 76,300 142,000 140,000 282,000 150,000 LONG TERM DEBT COMMON STOCK ($1.00 par) RETAINED EARNINGS 68,000 218,000 TOTAL OWNER'S EQUITY 226,300 TOTAL LIABILITIES AND EQUITY 522,000 500,000
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