Assume the company is operating at full capacity. The company pays out in dividends 60% of its net income andmoves 40% of its net income into retained earnings.ASSETS20202019CASH AND MARKETABLE SECURITIES29,00025,000116,000 100,000145,000 125,000290,000 250,000362,000 350,000130,000 100,000232,000 250,000TOTAL ASSETS 522,000 500,000ACCOUNTS RECEIVABLEINVENTORIESCURRENT ASSETSGROSS PLANT AND EQUIPMENTLESS: ACCUMULATED DEPRECIATIONNET FIXED ASSETSLIABILITIES AND EQUITY78,000ACCOUNTS PAYABLEACCRURALSNOTES PAYABLE90,48030,00034,80025,420CURRENT LAIBILITIES 150,700 142,000145,000 140,.000TOTAL LIABILITIES 295,700 282,000150,000 150,00076,30034,000LONG TERM DEBTCOMMON STOCK ($1.00 par)RETAINED EARNINGS68,000TOTAL OWNER'S EQUITY 226,300 218,000TOTAL LIABILITIES AND EQUITY 522,000 500,000INCOME STATEMENT20202019NET REVENUES & SALES (100,000 UNITS)COST OF GOODS SOLDGROSS PROFITFIXED OPERATING EXPENSES (pre depreciation)EBITDA Earnings before Intrest, Taxes, Dep & AmoritDEPRECIATION EXPENSEOPERATING INCOME (EBIT)INTERESTINCOME BEFORE TAXES (EBT)INCOME TAXES (40%)NET INCOME812,000 700,000522,000 450,000290,000 250,000174,200 151,000115,800 99,.00030,000-85,80014,50071,30025,00074,00014,00060,00024,00036,00028,5007,50028,52042,780div34,480Earnings8,300NUMBER OF SHARES OUTSTANDING50,00050,000If we expect sales to increase by 20% next year what should be the new level of net income?[ Select]Based on a 20% increase in sales what should be the projected level of retained earnings on the balance sheet?[ Select)Based on a 20% increase in sales what should be the projected level of Total Assets?(Select]Based on a 20% increase in sales compute the Additional Financing Needs for next year.[ Select]

As per the honor code, we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit…

If we expect sales to increase by 20% next year what should be the new level of net income? ( Select) Based on a 20% increase in sales what should be the projected level of retained earnings on the balance sheet? I Select] Based on a 20% increase in sales what should be the projected level of Total Assets? | Select)

If we expect sales to increase by 20% next year what should be the new level of net income? ( Select) Based on a 20% increase in sales what should be the projected level of retained earnings on the balance sheet? I Select] Based on a 20% increase in sales what should be the projected level of Total Assets? | Select)

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter14: Statement Of Cash Flows

Section: Chapter Questions

Problem 24BEA: During 20X2, Norton Company had the following transactions: a. Cash dividends of 20,000 were paid....

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During 20X2, Norton Company had the following transactions: a. Cash dividends of 20,000 were paid. b. Equipment was sold for 9,600. It had an original cost of 36,000 and a book value of 18,000. The loss is included in operating expenses. c. Land with a fair market value of 50,000 was acquired by issuing common stock with a par value of 12,000. d. One thousand shares of preferred stock (no par) were sold for 14 per share. Norton provided the following income statement (for 20X2) and comparative balance sheets: Required: Prepare a worksheet for Norton Company.
During 20X2, Evans Company had the following transactions: a. Cash dividends of 6,000 were paid. b. Equipment was sold for 2,880. It had an original cost of 10,800 and a book value of 5,400. The loss is included in operating expenses. c. Land with a fair market value of 15,000 was acquired by issuing common stock with a par value of 3,600. d. One thousand shares of preferred stock (no par) were sold for 4.20 per share. Evans provided the following income statement (for 20X2) and comparative balance sheets: Required: Prepare a worksheet for Evans Company.
Fisafolia Corporation has gross income from operations of $210,000 and operating expenses of $160,000 for 2019. The corporation also has $30,000 in dividends from publicly traded domestic corporations in which the ownership percentage was 45 percent. Calculate the corporation's dividends received deduction for 2019. $_____________ Assume that instead of $210,000, Fisafolia Corporation has gross income from operations of $135,000. Calculate the corporation's dividends received deduction for 2019. $___________ Assume that instead of $210,000, Fisafolia Corporation has gross income from operations of $158,000. Calculate the corporation's dividends received deduction for 2019. $_____________
Income Statement Ratio The income statement of Holly Enterprises shows operating revenues of $134,800, selling expenses of $38,310, general and administrative expenses of $36,990, interest expense of $580, and income tax expense of $13,920. Hollys stockholders equity was $280,000 at the beginning of the year and $320,000 at the end of the year. The company has 20,000 shares of stock outstanding at the end of the year. Required Compute Hollys profit margin. What other information would you need in order to comment on whether this ratio is favorable?
Leverage Cook Corporation issued financial statements at December 31, 2019, that include the following information: Balance sheet at December 31,2019 Assets $8,000,000 Liabilities $1,200,000 Stockholders' equity (300,000 shares) $6,800,000 Income statement for 2019: Income from operations $1,200,000 Less: Interest expense (100,000) Income before taxes $1,100,000 Less: Income taxes expense (0,30) (330,000) Net income $ 770,000 The levels of assets, liabilities, stockholders' equity, and operating income have been stable in recent years; however, Cook Corporation is planning a 51,800,000 expansion program that will increase income from operations by $350,000 to $1,550,000, Cook is planning to sell 8.5% notes at par to finance the expansion. Required: What earnings per share does Cook report before the expansion?