BBP, Inc., with sales of $400,000, has the following balance sheet: BBP, Incorporated Balance Sheet as of 12/31/X0 Assets Liabilities and Equity Cash $ 20,000 Accounts payable $ 16,000 Accounts receivable 52,000 Accruals 20,000 Inventory 72,000 Notes payable 60,000 Current assets 144,000 Current liabilities 96,000 Fixed assets 175,000 Common stock 100,000 Retained earnings 123,000 Total assets $ 319,000 Total liabilities and equity $ 319,000 The firm earns 17 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 $520,000 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. The firm funds of $ . 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, it funds of $ .

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...

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BBP, Inc., with sales of $400,000, has the following balance sheet:

BBP, Incorporated Balance Sheet as of 12/31/X0
Assets		Liabilities and Equity
Cash	$	20,000	Accounts payable	$	16,000
Accounts receivable		52,000	Accruals		20,000
Inventory		72,000	Notes payable		60,000
Current assets		144,000	Current liabilities		96,000
Fixed assets		175,000	Common stock		100,000
			Retained earnings		123,000
Total assets	$	319,000	Total liabilities and equity	$	319,000

The firm earns 17 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 $520,000 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.

The firm funds of $ .

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, it funds of $ .

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