Owen's Electronics has nine operating plants in seven southwestern states. Sales for last year were $100 million, and the balancesheet at year-end is similar in percentage of sales to that of previous years (and this will continue in the future). All assets (includingfixed assets) and current liabilities will vary directly with sales. The firm is working at full capacity.AssetsCashAccounts receivableInventoryCurrent assetsFixed assetsTotal assets$ 103233$ 75New funds$118Balance Sheet(in $ millions)Liabilities and Stockholdera EquityAccounts payableAccrued wagesAccrued taxesCurrent liabilitiesNotes payableCommon stockRetained earningsTotal liabilities and stockholders' equity$18711$ 36141751$118TOUS REPOROwen's Electronics has an aftertax profit margin of 9 percent and a dividend payout ratio of 50 percent.STAU SLUKUTENHOTELIf sales grow by 25 percent next year, determine how many dollars of new funds are needed to finance the growth. (Do not roundintermediate calculations. Enter your answer in dollars, not millions, (e.g., $1,234,567).)

New funds refer to the funds that the company generates for financing requirements. There are…

Owen's Electronics has nine operating plants in seven southwestern states. Sales for last year were $100 million, and the balance sheet at year-end is similar in percentage of sales to that of previous years (and this will continue in the future). All assets (including fixed assets) and current liabilities will vary directly with sales. The firm is working at full capacity. Assets Cash Accounts receivable Inventory Current assets Fixed assets Total assets $ 10 32 33 $75 43 $118 Balance Sheet (in $ millions) Liabilities and Stockholders' Equity Accounts payable Accrued wages Accrued taxes Current liabilities Notes payable Common stock Retained earnings Total liabilities and stockholders' equity $18 7 11 $36 14 17 51 $118 Owen's Electronics has an aftertax profit margin of 9 percent and a dividend payout ratio of 50 percent. If sales grow by 25 percent next year, determine how many dollars of new funds are needed to finance the growth. (Do not round intermediate calculations. Enter your answer in dollars, not millions, (e.g., $1,234,567).)

Owen's Electronics has nine operating plants in seven southwestern states. Sales for last year were $100 million, and the balance sheet at year-end is similar in percentage of sales to that of previous years (and this will continue in the future). All assets (including fixed assets) and current liabilities will vary directly with sales. The firm is working at full capacity. Assets Cash Accounts receivable Inventory Current assets Fixed assets Total assets $ 10 32 33 $75 43 $118 Balance Sheet (in $ millions) Liabilities and Stockholders' Equity Accounts payable Accrued wages Accrued taxes Current liabilities Notes payable Common stock Retained earnings Total liabilities and stockholders' equity $18 7 11 $36 14 17 51 $118 Owen's Electronics has an aftertax profit margin of 9 percent and a dividend payout ratio of 50 percent. If sales grow by 25 percent next year, determine how many dollars of new funds are needed to finance the growth. (Do not round intermediate calculations. Enter your answer in dollars, not millions, (e.g., $1,234,567).)

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter16: Financial Statement Analysis

Section: Chapter Questions

Problem 3MAD: Deere Company (DE) manufactures and distributes farm and construction machinery that it sells...

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