None The Booth Company's sales are forecasted to double from $1,000 in 2019 to $2,000 in 2020. Here is the December 31, 2019, balance sheet:CashAccounts receivableInventories$ 100Accounts payable$ 50200Notes payable150200Accruals50Net fixed assets500Long-term debt400Common stock100Total assets$1,000Retained earningsTotal liabilities and equity250$1,000Booth's fixed assets were used to only 50% of capacity during 2019, 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 3% and its payout ratio to be 40%. What is Booth's additional funds needed (AFN) for the coming year? Round your answer to the nearest dollar.

calculate Booths additionalfunds needed (AFN)for 2020 ,we increase current assets inproportion to…

Answered: The Booth Company's sales are…

Fundamentals Of Financial Management, Concise Edition (mindtap Course List)

10th Edition

ISBN:9781337902571

Author:Eugene F. Brigham, Joel F. Houston

Publisher:Eugene F. Brigham, Joel F. Houston

Chapter3: Financial Statements, Cash Flow, And Taxes

Section: Chapter Questions

Problem 19SP

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LONG-TERM FINANCING NEEDED At year-end 2019, total assets for Arrington Inc. were 1.8 million and accounts payable were 450,000. Sales, which in 2019 were 3.0 million, are expected to increase by 25% in 2020. Total assets and accounts payable are proportional to sales, and that relationship will be maintained; that is, they will grow at the same rate as sales. Arrington typically uses no current liabilities other than accounts payable. Common stock amounted to 500,000 in 2019, and retained earnings were 475,000. Arrington plans to sell new common stock in the amount of 130,000. The firms profit margin on sates is 5%; 35% of earnings will be retained. a. What were Arringtons total liabilities in 2019? b. How much new long-term debt financing will be needed in 2020? (Hint: AFN - New stock = New long-term debt.)
Additional Funds Needed The Booth Company's sales are forecasted to double from $1,000 in 2019 to $2,000 in 2020. Here is the December 31, 2019, balance sheet: Cash Accounts receivable Inventories Net fixed assets $100 200 200 500 Accounts payable Notes payable Accruals Long-term debt Common stock Retained earnings Total liabilities and equity $ 50 150 50 400 100 250 $1,000 Total assets $1,000 Booth's fixed assets were used to only 50% of capacity during 2019, 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 50%. What is Booth's additional funds needed (AFN) for the coming year? Round your answer to the nearest dollar. $ Check My Work
Additional Funds Needed The Booth Company's sales are forecasted to double from $1,000 in 2019 to $2,000 in 2020. Here is the December 31, 2019, balance sheet: Cash Accounts receivable Inventories $100 Net fixed assets 200 200 Accounts payable Notes payable Accruals 500 $50 150 Long-term debt Common stock Retained earnings Total assets $1,000 Total liabilities and equity $1,000 Booth's fixed assets were used to only 50% of capacity during 2019, 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 8% and its payout ratio to be 45%. What is Booth's additional funds needed (AFN) for the coming year? Round your answer to the nearest dollar. $ 50 400 100 250
If 5,027 is invested with 7% simple interest, find the exact interest using exact time and approximate time between February 15, 2019 and July 16, 2019. Ps; Cashflow diagram
Use the information below to answer questions 3, 4, 5 and 6. 2020 2021 Sales $5,300 $5,900 Depreciation 750 850 COGS 2400 2900 Interest 180 196 Cash 200 500 Accts Receivables 200 400 Notes Payable 800 550 Long-term debt 1500 1950 Net fixed assets 3000 3500 Accounts Payable 250 400 Inventory 700 900 Dividend payout 30% 30% Tax rate 35% 30% What is the AR period for 2021?
Use the information for the next two (2) questions. On December 31, 2020, Resistance Company reported the following liabilities: Note payable - 9% 4,500,000 Note payable - 8% 9,000,000 Note payable - 10% 6,000,000 Note payable - 11% 7,500,000 The 9% note payable is noncancelable and matures on July 31, 2021. Sufficient cash is expected to be available to retire the note at maturity.The 8% note payable matures on May 31, 2026 but the creditor has the option of calling the note or demanding payment on June 30, 2021. However, the call option is not expected to be exercised given the prevailing market condition.The 10% note payable is due on March 31, 2022. A debt covenant requires Resistance Company to maintain current assets at least equal to 150% of current liabilities. On December 31, 2020, Resistance Company obtained a waiver from the creditor until June 2021 having convinced the creditor that…
Consider the following liabilities of Future Brands, Inc., at December 31, 2018, the company’s fiscal year-end.Should they be reported as current liabilities or long-term liabilities?1. $77 million of 8% notes are due on May 31, 2022. The notes are callable by the company’s bank, beginningMarch 1, 2019.2. $102 million of 8% notes are due on May 31, 2023. A debt covenant requires Future to maintain a currentratio (ratio of current assets to current liabilities) of at least 2 to 1. Future is in violation of this requirementbut has obtained a waiver from the bank until May 2019, since both companies feel Future will correct thesituation during the first half of 2019.
Fiscal year is January-December. All values PHP Millions. 2020 2019 Cash & Short Term Investments 57,461 23,022 Cash Only 21,361 20,892 Short-Term Investments 36,100 2,130 Cash & Short Term Investments Growth 149.59% -4.75% Cash & ST Investments / Total Assets 27.26% 12.28% Total Accounts Receivable 7,050 5,906 Accounts Receivables, Net 5,796 5,370 Accounts Receivables, Gross 6,455 5,762 Bad Debt/Doubtful Accounts -659 -392 Other Receivables 1,253 537 Accounts Receivable Growth 19.36% 21.46% Accounts Receivable Turnover 18.34 30.41 Inventories 10,727 12,016 Finished Goods - 9,116 Raw Materials 7,680 228 Progress Payments & Other 3,048 2,673 Other Current Assets 4,802 4,675 Prepaid Expenses 4,661 4,436 Miscellaneous Current Assets 141 239 Total Current Assets 80,041 45,619 Net Property, Plant & Equipment…
Fiscal year is January-December. All values PHP Millions. 2020 2019 Cash & Short Term Investments 57,461 23,022 Cash Only 21,361 20,892 Short-Term Investments 36,100 2,130 Cash & Short Term Investments Growth 149.59% -4.75% Cash & ST Investments / Total Assets 27.26% 12.28% Total Accounts Receivable 7,050 5,906 Accounts Receivables, Net 5,796 5,370 Accounts Receivables, Gross 6,455 5,762 Bad Debt/Doubtful Accounts -659 -392 Other Receivables 1,253 537 Accounts Receivable Growth 19.36% 21.46% Accounts Receivable Turnover 18.34 30.41 Inventories 10,727 12,016 Finished Goods - 9,116 Raw Materials 7,680 228 Progress Payments & Other 3,048 2,673 Other Current Assets 4,802 4,675 Prepaid Expenses 4,661 4,436 Miscellaneous Current Assets 141 239 Total Current Assets 80,041 45,619 Net Property, Plant & Equipment…
From the following forecast the Balance sheet for the year 2021Balance sheet as of 31/12/2020Liabilities& Equity AmountAssetsAmountEquity33,000 Plant and machinery 10,000Retained earnings 10,000 Land Property20.000Accounts payable 7,000 Accounts receivables 3.000Inventories10.000Cash in hand2000Cash at Bank5.00050,00050,0001. It is expected that the company will make a net income of10% of forecasted sales2. The company will purchase additional 5000 OMR worthmachines by taking an additional loan of 5000 OMR3. Forecasted sales OMR 100,0004. Dividend payout will be 50%5. The following estimates are also given;Accounts payable 10,000Accounts receivable 6,000Inventories 15,000Cash in hand 6.000Cash at bank 1,000
What total amount should be reported as CASH EQUIVALENTS as of December 31, 2020? Ecstacy Company reported the following information on December 31, 2020: * Share investments of P1,000,000 that are actively traded in the Philippine Stock Exchange. * Government treasury bills of P2,000,000. The treasury bills have a 10-year term and purchased on December 31, 2020 at which time they had two months to go until they mature. * Cash of P3,400,000 in the form of coin, currency, saving account and checking account. * Commercial papers of P1,500,000 The term of the commercial papers is nine months and the instruments were purchased on December 31, 2020 at which time they had three months to go until they mature.
Years Bank Total Asset 2018 STANBIC 6,205,018 2019. STANBIC. 9,295,682 2020. STANBIC 12,742,132 2018. BARCLAYS 8,994,562 2019. ABSA 11,772,546 2020. ABSA. 12,546,473 Calculate the Herfindahl-Hirschman Index (HHI) for each year using total assets and comment on the level of competition

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