The Manning Company has financial statements as shown next, which are representative of the company's historical average. The firmis expecting a 30 percent increase in sales next year, and management is concerned about the company's need for external funds.The increase in sales is expected to be carried out without any expansion of fixed assets, but rather through more efficient assetutilization in the existing store. Among liabilities, only current liabilities vary directly with sales.SalesExpensesEarnings before interest and taxesInterestEarnings before taxesTaxesEarnings after taxesDividendsCurrent assetsIncome StatementCashAccounts receivableInventoryFixed assetsTotal assetsAssetsThe firm$ 250,000184,800$ 65,2008,600$ 56,60016,600$ 40,000$ 16,000Balance Sheet (in $ millions)$ 221,000Liabilities and Stockholders' Equity$ 4,000 Accounts payableAccrued wages53,00068,000Accrued taxes$ 125,00096,000Current liabilitiesNotes payableLong-term debtCommon stockRetained earningsTotal liabilities and stockholders' equity$ 23,5002,0004,500$ 30,0008,60023,000120,00039,400$ 221,000Using the percent-of-sales method, determine whether the company has external financing needs, or a surplus of funds. (Hint: A profitmargin and payout ratio must be found from the income statement.)Note: Do not round intermediate calculations. Input your answer as positive a value.

Name: The Manning Company has financial statements as shown next, which are
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Description: The Manning Company has financial statements as shown next, which are representative of the company's historical average. The firmis expecting a 30 percent increase in sales next year, and management is concerned about the company's need for externa

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The Manning Company has financial statements as shown next, which are representative of the company's historical average. The s expecting a 30 percent increase in sales next year, and management is concerned about the company's need for external fund The increase in sales is expected to be carried out without any expansion of fixed assets, but rather through more efficient asset utilization in the existing store. Among liabilities, only current liabilities vary directly with sales. Sales Expenses Earnings before interest and taxes Interest. Earnings before taxes Taxes Income Statement. Earnings after taxes. Dividends Current assets. Cash Accounts receivable. Inventory Fixed assets Assets $ 250,000 184,800 $ 65,200 8,600 $ 56,600 16,600 $ 40,000 $ 16,000 Balance Sheet (in $ millions) $ 125,000 96,000 Liabilities and Stockholders' Equity $ 4,000 Accounts payable Accrued wages 53,000 68,000 Accrued taxes Current liabilities Notes payable Long-term debt Common stock Retained earnings $ 23,500 2,000 4,500 $ 30,000 8,600 23,000 120,000 39,400

The Manning Company has financial statements as shown next, which are representative of the company's historical average. The s expecting a 30 percent increase in sales next year, and management is concerned about the company's need for external fund The increase in sales is expected to be carried out without any expansion of fixed assets, but rather through more efficient asset utilization in the existing store. Among liabilities, only current liabilities vary directly with sales. Sales Expenses Earnings before interest and taxes Interest. Earnings before taxes Taxes Income Statement. Earnings after taxes. Dividends Current assets. Cash Accounts receivable. Inventory Fixed assets Assets $ 250,000 184,800 $ 65,200 8,600 $ 56,600 16,600 $ 40,000 $ 16,000 Balance Sheet (in $ millions) $ 125,000 96,000 Liabilities and Stockholders' Equity $ 4,000 Accounts payable Accrued wages 53,000 68,000 Accrued taxes Current liabilities Notes payable Long-term debt Common stock Retained earnings $ 23,500 2,000 4,500 $ 30,000 8,600 23,000 120,000 39,400

Entrepreneurial Finance

6th Edition

ISBN:9781337635653

Author:Leach

Publisher:Leach

Chapter14: Security Structures And Determining Enterprise Values

Section: Chapter Questions

Problem 16EP

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