The most recent financial statements for live co. Are shown here: income statement: sales $3,000, cost 1,980, Taxable income $1,020, Taxes (34%) 347, net income $673, current assets $3,189, fixed assets 7,807, total $10, 996, debt $6,376, equity 4,620, total $10,996. Assets and cost are proportional to sales. Debt and equity are not. The company maintains a constant 20 percent dividend payout ratio. No external equity financing is possible. What is the internal growth rate?

The most recent financial statements for live co. Are shown here: income statement: sales $3,000, cost 1,980, Taxable income $1,020, Taxes (34%) 347, net income $673, current assets $3,189, fixed assets 7,807, total $10, 996, debt $6,376, equity 4,620, total $10,996. Assets and cost are proportional to sales. Debt and equity are not. The company maintains a constant 20 percent dividend payout ratio. No external equity financing is possible. What is the internal growth rate?

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 51E: Juroe Company provided the following income statement for last year: Juroes balance sheet as of...

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Juroe Company provided the following income statement for last year: Juroes balance sheet as of December 31 last year showed total liabilities of 10,250,000, total equity of 6,150,000, and total assets of 16,400,000. Required: 1. Calculate the return on sales. (Note: Round the percent to two decimal places.) 2. CONCEPTUAL CONNECTION Briefly explain the meaning of the return on sales ratio, and comment on whether Juroes return on sales ratio appears appropriate.
The most recent financial statements for live co. Are shown here: income statement: sales $12,000, costs 7,200, taxable income $4,800, taxes(34%) 1,632, net income $3,168, current assets $ 25,876, fixed assets 18,106, total $43,982, debt $ 25,502, equity 18, 480, total $43,982. Assets and cost are proportional to sales. Debt and equity are not. The company maintains a constant 22 percent dividend payout ratio. No external equity financing is possible. What is sustainable growth rate?
The most recent financial statements for Assouad, Incorporated, are shown here: Income Statement Balance Sheet $ Sales Costs Current assets $5,100 Current liabilities $ 3,150 10,700 7,600 Fixed assets 10,000 Long-term debt 4,680 Taxable income $3,100 Equity 7,270 Taxes (24%) 744 Total $ 15,100 Total $ 15,100 Net income $ 2,356 Assets, costs, and current liabilities are proportional to sales. Long-term debt and equity are not. The company maintains a constant 44 percent dividend payout ratio. As with every other firm in its industry, next year's sales are projected to increase by exactly 15 percent. What is the external financing needed? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
The most recent financial statements for Bello Co. are shown here:   Income Statement Balance Sheet   Sales $13,000     Current assets $28,032     Debt $27,628     Costs 7,800     Fixed assets 19,616     Equity 20,020     Taxable income $5,200       Total $47,648       Total $47,648     Taxes (22%) 1,144       Net income $4,056   Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 36 percent dividend payout ratio. What is the sustainable growth rate?
The most recent financial statements for Assouad, Inc., are shown here:   Income Statement Balance Sheet   Sales $3,500     Current assets $4,000     Current liabilities $970     Costs 2,500     Fixed assets 6,200     Long-term debt 3,500     Taxable income $1,000     Equity 5,730     Taxes (25%) 250       Total $10,200       Total $10,200       Net income $750   Assets, costs, and current liabilities are proportional to sales. Long-term debt and equity are not. The company maintains a constant 50 percent dividend payout ratio. As with every other firm in its industry, next year's sales are projected to increase by exactly 20 percent. What is the external financing needed?
The most recent financial statements for Bello Co. are shown here: Income Statement Balance Sheet   Sales $ 19,800 Current assets $ 11,880 Debt $ 16,240   Costs 13,500 Fixed assets 30,150 Equity 25,790   Taxable income $ 6,300     Total $ 42,030     Total $ 42,030   Taxes (24%) 1,512     Net income $ 4,788 Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 35 percent dividend payout ratio. What is the sustainable growth rate? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
The most recent financial statements for Martin, Inc., are shown here: Income Statement: Sales $24, 550 Costs -14,730 Taxable income $9,820 Taxes (21 %) -2,062 Net income $7,758 Balance Sheet: Assets $93, 290 Debt $33,000 Equity 60, 290 Total $93, 290 Total $93, 290 Assets and costs are proportional to sales. Debt and equity are not. A dividend of $ 955 was paid, and Martin wishes to maintain a constant payout ratio. Next year's sales are projected to be $29,951. What is the external financing needed? (Do not round intermediate calculations. Round your answer to 2 decimal places. )
Comparative income statements and balance sheets for F&N are shown below ($ millions): Year 2 Year 1 Income Statement $19,889 6,204 Net sales. $20,092 6,044 Cost of goods Gross profit. Selling, general, and administrative expense Depreciation and amortization expense Interest expense (revenue) 14,048 7,893 803 (308) 13,685 9,221 773 292 3,399 1,222 Income before tax 5,660 1,691 Income tax expense. Net income $ 3,969 $ 2,177 Outstanding shares 3,491 3,481
The most recent financial statements for Assouad, Incorporated, are shown here: Income Statement Balance Sheet Sales $ 8,700 Current assets $ 4,200 Current liabilities $ 1,900 Costs 5,600 Fixed assets 10,400 Long-term debt 3,800 Taxable income $ 3,100 Equity 8,900 Taxes (25%) 775 Total $ 14,600 Total $ 14,600 Net income $ 2,325 Assets, costs, and current liabilities are proportional to sales. Long-term debt and equity are not. The company maintains a constant 40 percent dividend payout ratio. As with every other firm in its industry, next year’s sales are projected to increase by exactly 15 percent. What is the external financin
The most recent financial statements for summer tyme, inc, are shown here: income statement: sales $4,300, costs 2,300, taxable income $ 2,000, taxes (35%) 700, net income $1,300, current assets $4,900, fixed assets 6,500, total $11,400, current liabilities $940, long term debt 3,540, equity 6,920, total 11,400. Assets, cost, and current liabilities are proportional to sales. Long term debt and equity are not. The company maintains a constant 60 percent dividend payout ratio. As with every other firm in its industry, next years sales are projected to increase by exactly 20 percent. What is the external financing needed?
Stockton Co. prepared its income statement containing the information below. Using vertical analysis, what percentages would apply to cost of sales, gross profit, and interest expense, respectively? Net Sales Revenue $ 649,000 Cost of Sales 431,000 Gross Profit 218,000 Operating and Other Expenses 88,500 Interest Expense 32,500 Income Tax Expense 35,500 Net Income $ 61,500 Cost of Sales Gross Profit Interest Expense A) 73.4 % 100.0 % 16.3 % B) 49.7 % 60.7 % 39.7 % C) 100.0 % 50.6 % 8.2 % D) 66.4 % 33.6 % 5.0 % Multiple Choice Option B Option C Option A Option D
The most recent financial statements for Anderson Company are shown here: Income Statement Balance Sheet Sales Costs $ 58,800 Current assets $ 28,800 24,800 Fixed assets 123,000 Long-term debt Equity $ 62,600 89,200 Taxable income $ 34,000 Total $151,800 Total $151,800 Taxes (21%) 7,140 Net income $ 26,860 Assets and costs are proportional to sales. Long-term debt and equity are not. The company maintains a constant 30 percent dividend payout ratio and a constant debt- equity ratio. What is the maximum increase in sales that can be sustained assuming no new equity is issued? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Maximum increase in sales