Income Statement (2016)Credit SalesCost of Goods Sold (800)Taxable IncomeTaxes (34%)Net IncomeBalance Sheet (2016)CashAccounts Receivable1,000160 Accounts Payable440 Short-Term Debt600 Long-Term Debt1.800 Common Stock300100800800Retained Eamings 1.0003.000InventoryFixed AssetsTotal3.000 TotalDividend (33.33%)Retained EarningsMain assumplionsSales are expected to increase by 25% in 2017."Cost of goods sold is a fraction of sales in the income statement. All other items are independentof sales.Each current asset and accounts payable are fractions of sales in the balance sheet All otheritems are independent of sales.If there is a need for external funding:o raise funds through short term debt first, but current ratio must not be smaller than 3.o raise the remaining funds through 50% long-term debt and 50% equity offering (commonstock).What is the new cash conversion cycle in year 2017? (Let 1 xr = 360 davs)1 months3 months5 months7 months

Income Statement (2016) Particulars Amount Credit Sales 1000 Cost of Goods Sold (800)…

Income Statement (2016) Credit Sales Cost of Goods Sold (800) Taxable Income Taxes (34%) Balance Sheet (2016) 1.000 Cash 160 Accounts Payable Accounts Receivable 440 Short-Term Debt 600 Long-Term Debt 1.800 Common Siock 100 800 Inventory Fixed Assets 800 Net Income Retained Eamings 1.000 Total 3.000 Total 3.000 Dividend (33.33%) Retained Eamings Main assumplions Sales are expected to increase by 25% in 2017. "Cost of goods sold is a fraction of sales in the income statement. All other tems are independent of sales Each current asset and accounts payable are fractions of sales in the balance sheet All other items are independent of sales. If there is a need for external funding o raise funds through short term debt first, but current ratio must not be smaller than 3. o raise the remaining funds through 50% long-term debt and 50% equity offering (common stock) What is the new. casb. conversion cycle in year 2017? (Let 1 yr = 360 days)

Income Statement (2016) Credit Sales Cost of Goods Sold (800) Taxable Income Taxes (34%) Balance Sheet (2016) 1.000 Cash 160 Accounts Payable Accounts Receivable 440 Short-Term Debt 600 Long-Term Debt 1.800 Common Siock 100 800 Inventory Fixed Assets 800 Net Income Retained Eamings 1.000 Total 3.000 Total 3.000 Dividend (33.33%) Retained Eamings Main assumplions Sales are expected to increase by 25% in 2017. "Cost of goods sold is a fraction of sales in the income statement. All other tems are independent of sales Each current asset and accounts payable are fractions of sales in the balance sheet All other items are independent of sales. If there is a need for external funding o raise funds through short term debt first, but current ratio must not be smaller than 3. o raise the remaining funds through 50% long-term debt and 50% equity offering (common stock) What is the new. casb. conversion cycle in year 2017? (Let 1 yr = 360 days)

Fundamentals of Financial Management (MindTap Course List)

15th Edition

ISBN:9781337395250

Author:Eugene F. Brigham, Joel F. Houston

Publisher:Eugene F. Brigham, Joel F. Houston

Chapter4: Analysis Of Financial Statements

Section: Chapter Questions

Problem 24P: Income Statement for Year Ended December 31, 2018 (Millions of Dollars) Net sales 795.0 Cost of...

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HCB, Inc.'s financial partial statements are shown below. HCB Income Statement 2021 Sales 2,000.0 Assets 2021 Cash 86.0 Accounts receivable 360.0 Inventory 320.0 Short-term investments 223.0 Total current assets 989.0 Net fixed assets 1,940.0 Total assets 2,929.0 Liabilities and equity 2021 Accounts payable 200.0 Accruals 240.0 Short-term debt 292.9 Total current liabilities 732.9 Long-term debt 1,757.4 Total liabilities 2,490.3 Par + paid in capital less treasury 238.7 Retained earnings 200.0…
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