a. What were Arrington's total liabilities in 2021? Write out your answer completely. For example, 25 million should be entered as 25,000,000. Round your answer to the nearest cent. $ b. How much new long-term debt financing will be needed in 2022? (Hint: AFN - New stock = New long-term debt.) Write out your answer completely. For example, 25 million should be entered as 25,000,000. Do not round intermediate calculations. Round your answer to the nearest cent. $
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- At year-end 2021, total assets for Arrington Inc. were $1.4 million and accounts payable were $330,000, Sales, which in 2021 were $2.70 million, are expected to increase by 25% in 2022. 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 cument abilities other than accounts payable. Common stock amounted to $410,000 in 2021, and retained earnings were $335,000. Arrington plans to sell new common stock in the amount of $105,000. The firm's profit margin on sales is 5%; 35% of earnings will be retained. What were Arrington's total abisties in 2021? Write out your answer completely. For example, 25 million should be entered as 25,000,000. Round your answer to the nearest cent 1 How much new long-term debt financing will be needed in 20227 (Hint: APN New stock New long-term debt.) Write out your answer completely. For example, 25 million should be entered as…At year-end 2018, Wallace Landscaping's total assets were $2.17 million, and its accounts payable were $470,000. Sales, which in 2018 were $2.2 million, are expected to increase by 30% in 2019. Total assets and accounts payable are proportional to sales, and that relationship will be maintained. Wallace typically uses no current liabilities other than accounts payable. Common stock amounted to $505,000 in 2018, and retained earnings were $345,000. Wallace has arranged to sell $60,000 of new common stock in 2019 to meet some of its financing needs. The remainder of its financing needs will be met by issuing new long-term debt at the end of 2019. (Because the debt is added at the end of the year, there will be no additional interest expense due to the new debt.) Its net profit margin on sales is 7%, and 45% of earnings will be paid out as dividends. a. What was Wallace's total long-term debt in 2018? Do not round intermediate calculations. Round your answer to the nearest dollar. $ What…At year-end 2018, total assets for Arrington Inc. were$1.8 million and accounts payable were $450,000. Sales, which in 2018 were $3.0 million,are expected to increase by 25% in 2019. Total assets and accounts payable are proportionalto sales, and that relationship will be maintained; that is, they will grow at the same rate assales. Arrington typically uses no current liabilities other than accounts payable. Commonstock amounted to $500,000 in 2018, and retained earnings were $475,000. Arrington plansto sell new common stock in the amount of $130,000. The firm’s profit margin on sales is5%; 35% of earnings will be retained.a. What were Arrington’s total liabilities in 2018?b. How much new long-term debt financing will be needed in 2019?(Hint: AFN - New stock = New long-term debt.)
- At year-end 2020, RWD Inc.’s total assets were $1.2 million and its accounts payable were $375,000. Sales, which in 2020 were $2.5 million, are expected to increase by 25% in 2021. Total assets and accounts payable are proportional to sales, and that relationship will be maintained. RWD typically uses no current liabilities other than accounts payable. Its profit margin on sales is 6%, and 40% of earnings will be paid out as dividends. Determine the amount of AFN for year 2021.At year-end 2020, RWD Inc.’s total assets were $1.2 million and its accounts payable were $375,000. Sales, which in 2020 were $2.5 million, are expected to increase by 25% in 2021. Total assets and accounts payable are proportional to sales, and that relationship will be maintained. RWD typically uses no current liabilities other than accounts payable. Its profit margin on sales is 6%, and 40% of earnings will be paid out as dividends. Determine the amount of AFN for year 2021. Calculate earnings per share (EPS) for CVN and TPO for year 2020 and each of the next 6 years if CVNacquires TPO at a ratio of exchange of 1.3. Describe the initial effect and long run effect on EPS of CVN and TPO. Does merger look beneficial forCVN and TPO? Why or why not?At year-end 2019, ABC Inc.’s total assets were $1 million and its accounts payable were $325,000. Sales, which in 2019 were $2 million, are expected to increase by 30% in 2020. Total assets and accounts payable are proportional to sales, and that relationship will be maintained. ABC typically uses no current liabilities other than accounts payable. Common stock amounted to $375,000 in 2019, and retained earnings were $260,000. ABC has arranged to sell $60,000 of new common stock in 2020 to meet some of its financing needs. The remainder of its financing needs will be met by issuing new long-term debt at the end of 2020. (Because the debt is added at the end of the year, there will be no additional interest expense due to the new debt.) Its profit margin on sales is 5%, and 45% of earnings will be paid out as dividends. a. What were ABC’s total long-term debt and total liabilities in 2020?b. How much additional fund needed (AFN) in 2020?
- At year-end 2016, total assets for Arrington Inc. were $1.7 million and accounts payable were $360,000. Sales, which in 2016 were $2.9 million, are expected to increase by 20% in 2017. 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 $430,000 in 2016, and retained earnings were $210,000. Arrington plans to sell new common stock in the amount of $65,000. The firm's profit margin on sales is 7%; 65% of earnings will be retained. a. What were Arrington's total liabilities in 2016? Write out your answer completely. For example, 25 million should be entered as 25,000,000. Round your answer to the nearest cent. b. How much new long-term debt financing will be needed in 2017? Write out your answer completely. For example, 25 million should be entered as 25,000,000. Do not round your…The Malia Corporation had sales in 2019 of $65 million, total asswets of $42 million, and total liabilities of $20 million. The interest rate on th company's debt is 6 percent and its tax rate is 21 percent. The operating profit margin was 12 percent. What were the company's operating profits and net income? What was the operating return on assets and return on equity? Assume that interest must be paid on all of the debt.Paladin Furnishings generated $4 million in sales during 2021, and its year-end total assets were $2.8 million. Also, at year-end 2021, current liabilities were $500,000, consisting of $200,000 of notes payable, $200,000 of accounts payable, and $100,000 of accrued liabilities. Looking ahead to 2022, the company estimates that its assets must increase by $0.70 for every $1.00 increase in sales. Paladin's profit margin is 6%, and its retention ratio is 60%. How large of a sales increase can the company achieve without having to raise funds externally? Write out your answer completely. For example, 25 million should be entered as 25,000,000. Do not round intermediate calculations. Round your answer to the nearest cent. $
- You are considering two possible companies for investment purposes. The following data is available for each company. Company A Net credit sales, Dec. 31, 2019 $540,000 Net Accounts receivable, Dec 31, 2018 $120,000 Net accounts receivable, Dec 31, 2019 $180,000 Number of days sales in receivables ratio, 2018 103 days Net Income, Dec. 31, 2018 $250,000 Company B Net credit sales, Dec. 31, 2019 $620,000 Net Accounts receivable, Dec 31, 2018 $145,000 Net accounts receivable, Dec 31, 2019 $175,000 Number of days sales in receivables ratio, 2018 110 days Net Income, Dec. 31, 2018 $350,000 Additional Information: Company A: Bad debt estimation percentage using the income statement method is 6%, and the balance sheet…4. A Company has Net Sales of 2,000,000 for 2020, Accounts Recitable for 500,000 in 2020, and Accounts Receivable of 350,000 in 2019. Calculate the Accounts Receivable Turnover Ratio.Hartzell Inc. had the following data for 2020, in millions: Net income = $600; after-tax operating income [EBIT(1-T)] = $700; and Total assets = $1,700. Information for 2021 is as follows: Net income = $825; after-tax operating income [EBIT(1-T)] = $1,700; and Total assets = $2,250. Assume the firm had no excess cash. How much free cash flow did the firm generate during 2021? O a. $275 million O b. $2,250 million O c. $1,375 million O d. $1,150 million O e. $1,475 million