BBP, Inc., with sales of $600,000, has the following balance sheet: BBP, Incorporated Balance Sheet as of 12/31/X0 Assets Liabilities and Equity Cash $ 30,000 Accounts payable $ 18,000 Accounts receivable 90,000 Accruals 36,000 Inventory 108,000 Notes payable 70,000 Current assets 228,000 Current liabilities 124,000 Fixed assets 180,000 Common stock 120,000 Retained earnings 164,000 Total assets $ 408,000 Total liabilities and equity $ 408,000 The firm earns 15 percent on sales and distributes 25 percent of its earnings. Using the percent of sales, determine whether the firm will need external funds and forecast the new balance sheet for sales of $780,000 assuming that cash changes with sales and that the firm is not operating at capacity. Use newly issued short-term debt to cover any needs for additional finance. If the firm has excess funds, add them to cash. Round your answers to the nearest dollar. Enter your answers as positive values. will the firm need external funds? If so how much will they need? Fill In the Balance Sheet BBP, Incorporated Balance Sheet as of 12/31/X1 Assets Liabilities and Equity Cash $ Accounts payable $ Accounts receivable Accruals Inventory Notes payable Current assets Current liabilities Fixed assets Common stock Retained earnings Total assets $ Total liabilities and equity $ Would your answers be different if the firm distributed all of its earnings? Round your answers to the nearest dollar. Enter your answer as a positive value. If management distributed all the firm's earnings will it need external funds? If so how much?

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 17BEA: Ernst Companys balance sheet shows total liabilities of 32,500,000, total stockholders equity of...

See similar textbooks

Related questions

Question

BBP, Inc., with sales of $600,000, has the following balance sheet:

BBP, Incorporated Balance Sheet as of 12/31/X0
Assets		Liabilities and Equity
Cash	$	30,000	Accounts payable	$	18,000
Accounts receivable		90,000	Accruals		36,000
Inventory		108,000	Notes payable		70,000
Current assets		228,000	Current liabilities		124,000
Fixed assets		180,000	Common stock		120,000
			Retained earnings		164,000
Total assets	$	408,000	Total liabilities and equity	$	408,000

The firm earns 15 percent on sales and distributes 25 percent of its earnings. Using the percent of sales, determine whether the firm will need external funds and forecast the new balance sheet for sales of $780,000 assuming that cash changes with sales and that the firm is not operating at capacity. Use newly issued short-term debt to cover any needs for additional finance. If the firm has excess funds, add them to cash. Round your answers to the nearest dollar. Enter your answers as positive values.

will the firm need external funds? If so how much will they need?

Fill In the Balance Sheet

BBP, Incorporated Balance Sheet as of 12/31/X1
Assets		Liabilities and Equity
Cash	$		Accounts payable	$
Accounts receivable			Accruals
Inventory			Notes payable
Current assets			Current liabilities
Fixed assets			Common stock
			Retained earnings
Total assets	$		Total liabilities and equity	$

Would your answers be different if the firm distributed all of its earnings? Round your answers to the nearest dollar. Enter your answer as a positive value.

If management distributed all the firm's earnings will it need external funds? If so how much?

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 5 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.