Entries by Hannah Wangui

The 2015 financial statements for Growth Industries

August 31, 2019 in /by

Question 18-6)The 2015 financial statements for Growth Industries are presented below: INCOME STATEMENT, 2015  Sales $320,000    Costs  210,000      EBIT $110,000    Interest expense  22,000      Taxable income $88,000    Taxes (at 35%)  30,800      Net income $57,200        Dividends$ 28,600        Addition to retained earnings28,600      BALANCE SHEET, YEAR-END, 2015Assets  Liabilities    Current assets    Current liabilities      Cash$8,000      Accounts payable$15,000          Accounts receivable 13,000      Total current liabilities$15,000      Inventories 39,000    Long-term debt 220,000            Total current assets$60,000    Stockholders’ equity    Net plant and equipment 260,000      Common stock plus additional paid-in capital 15,000         Retained earnings 70,000      Total assets$320,000    Total liabilities and stockholders’ equity$320,000      Sales and costs in 2016 […]

 

Looking for a Similar Assignment? Order now and Get 10% Discount! Use Coupon Code "Newclient"

An all-equity-financed firm

August 31, 2019 in /by

Question 18-5)An all-equity-financed firm plans to grow at an annual rate of at least 21%. Its return on equity is 33%. What is the maximum possible dividend payout rate the firm can maintain without resorting to additional equity issues? (Do not round intermediate calculations. Enter your answer as a percent rounded to 1 decimal place.)   Maximum […]

 

Looking for a Similar Assignment? Order now and Get 10% Discount! Use Coupon Code "Newclient"

net income

August 31, 2019 in /by

Question 18-4)Plank’s Plants had net income of $16,000 on sales of $60,000 last year. The firm paid a dividend of $1,600. Total assets were $900,000, of which $450,000 was financed by debt. a.What is the firm’s sustainable growth rate? (Do not round intermediate calculations. Enter your answer as a percent rounded to 1 decimal place.)   Sustainable […]

 

Looking for a Similar Assignment? Order now and Get 10% Discount! Use Coupon Code "Newclient"

sales

August 31, 2019 in /by

Question 18-3)Executive Fruit’s financial manager believes that sales in 2015 could rise by as much as 20% or by as little as 10%. Assets and costs change in proportion to sales, debt remains constant, and no new equity financing occurs.  a.Recalculate the first-stage pro forma financial statements under these two growth assumptions and calculate the […]

 

Looking for a Similar Assignment? Order now and Get 10% Discount! Use Coupon Code "Newclient"