1. SLM, Inc., with sales of $1,000, has the following balance sheet: SLM, Incorporated Balance Sheet as of 12/31/X0 Liabilities and Equity Trade accounts payable Long-term debt Equity Assets Accounts receivable Inventory Plant $200 400 800 $1,400 $200 600 600 $1,400 It earns 10 percent on sales (after taxes) and pays no dividends. a. Determine the balance sheet entries for sales of $1,500 using cent of sales method of forecasting. b. Will the firm need external financing to grow to sales of $1,500? the per- c. Construct the new balance sheet and use newly issued long-term debt to cover any financial deficiency,

1. SLM, Inc., with sales of $1,000, has the following balance sheet: SLM, Incorporated Balance Sheet as of 12/31/X0 Liabilities and Equity Trade accounts payable Long-term debt Equity Assets Accounts receivable Inventory Plant $200 400 800 $1,400 $200 600 600 $1,400 It earns 10 percent on sales (after taxes) and pays no dividends. a. Determine the balance sheet entries for sales of $1,500 using cent of sales method of forecasting. b. Will the firm need external financing to grow to sales of $1,500? the per- c. Construct the new balance sheet and use newly issued long-term debt to cover any financial deficiency,

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 32BEB

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SLM, Inc., with sales of $800, has the following balance sheet: SLM, Incorporated Balance Sheet as of 12/31/X0 Assets Liabilities and Equity Accounts receivable $ 200 Trade accounts payable $ 120 Inventory 360 Long-term debt 510 Plant 800 Equity 730 $ 1,360 $ 1,360 It earns 9 percent on sales (after taxes) and pays no dividends. Round your answers to the nearest dollar. Determine the balance sheet entries for sales of $1,400 using the percent of sales method of forecasting. Accounts receivable: $ Inventory: $ Trade accounts payable: $ Will the firm need external financing to grow to sales of $1,400? If Yes, calculate the amount of external funding required, if No, enter zero. , the amount of the external funds needed is $ . Construct the new balance sheet and use newly issued long-term debt to cover a financial deficiency, if any. SLM, Incorporated Balance Sheet as of 12/31/X1 Assets Liabilities and Equity Accounts…
Duffern Industnes has total asets of $940.000 and total cumnt liablities (consusting only of accounts payahle and accrual) of S130,000 Dulert finances unng oly king delt ad common quy The nterest ate on its debt is % and its taK te in 40 The fim's banic earmng powe atio 14% and its debt to capital rate is 40% What are Dudiets ROE d ROIC De sot roatul your iatermeduate calculations Oa 13.75 94ON Ob1495N975% Oc9.7229ns Oa 174, 10.82
The following information is provided by Domino Pty Ltd (tax rate 30%). Date Transaction Amount ($) 01.07.19 Credit franking account balance 1,000 28.07.19 PAYG instalment paid for June quarter 2018/19 8,000 31.08.19 Paid annual GST for 2018/19 11,000 30.09.19 Paid final dividend from 2018/19 – 60% franked 42,000 25.10.19 PAYG instalment paid for Sep quarter 2019/20 4,000 28.10.19 Paid income tax from 2018/19 income tax return 7,500 15.12.19 Received 70% franked dividend 16,000 15.02.20 Paid interim dividend – fully franked 42,000 28.02.20 PAYG instalment paid for Dec quarter 2019/20 4,000 28.05.20 PAYG instalment varied to $0 from Mar quarter 0 30.06.20 Final dividend declared for 2019/20 9,000 The company bench mark percentage is 60% Taxable income of the company for the 2019/20 tax year was $50,000 Required Prepare the franking account of Domino Pty Ltd for the 2019/20 franking…
Subject :- ADVANCED FINANCIAL ACCOUNTING (FIN611) Question # 2:XYZ Limited has the following loans outstanding as at December 31, 2020. Calculate the Capitalization RateLoan – A @ 8% (taken at January 01, 2020) Rs. 600,000Loan – B @ 5% (taken at July 01, 2020) Rs.400,000Loan – C @ 9% (taken at September, 01 2020) Rs.300,000The company spent following amounts on construction of an asset.March 01, 2020. Rs. 500,000August 01, 2020. Rs. 400,000December 1, 2020 Rs. 400,000 Note:- Solve these question and please explain in detail in such a way that i will get full marks.
The summarized revenues and expenses information for Canadian Travel Inc. for the year 2018 states:1cost of goods sold CAD180,000, sales revenue CAD400,000, other (non-operating) revenues and gainsCAD30,000, sales general and administration expenses of CAD100,000. Net interest income is (+)CAD10,000 and the corporate income tax rate is 26,50%: Prepare the Income (i.e. Prot & Loss) Statement of Holiday Inc., showing Gross Prot, OperatingProt, Other gains/(losses), Earnings before Interest and Tax (EBIT), Prot before Tax and NetIncome i.e. Net Prot. Point out and explain which of all these revenue and expense items may imply/include non-cashtransactions or accounting records. If the ending balance in Retained Earnings on Canadian Travel Inc.s 31. Dec 2017 balance sheetwas $1,000,000 and a cash dividend of $10,000 was paid in 2018, using the above information showthe balance sheet entries of Retained Earnings as of 31. Dec 2018.In addition to the above, assume that Canadian…
The following selected information are made available by AAA company for the current year: Accounts Payable120,000 Bonds Payable 800,000 Warranty payable200,000 Total Liabilities1,300,000 Net Sales1,650,000 Total Assets2,200,000 In the common size statement of financial position, prepaid expense will have a proportional percentage of bonds payable? The total Noncurrent asset of CAM Company is P1,000,000 and the Equity is 1,200,000. The company has no liabilities during the period. If cash and cash equivalent is 500,000, what will be its proportional percentage in the common-size statement of financial position?
XYZ’s balance sheet and income statement are given below:Balance SheetCash 50 Accounts payable 100A/R 150 Notes payable -Inventories 300 Long-term debt (10%) 700Fixed assets 500 Common equity (20 shares) 200Total assets 1,000 Total liabilities and equity 1,000Income StatementSales 1,000Cost of goods sold 855EBIT 145Interest 70EBT 75Taxes (33.33%) 25Net income 50The industry average inventory turnover is 5, the interest rate on the firm’s long-term debt is 10percent, 20 shares are outstanding, and the stock sells at a P/E of 8.0. If XYZ changed its inventorymethods so as to operate at the industry average inventory turnover, if it used the funds generated bythis change to buy back common stock at the current market price and thus to reduce common equity,and if sales, the cost of goods sold, and the P/E ratio remained constant, by what dollar amount wouldits stock price increase?
We are given the following information for the Pettit Corporation. Sales (credit) Cash Inventory Current liabilities Asset turnover Current ratio Debt-to-assets ratio Receivables turnover $ 2,880,000 188,000 890,000 811,000 1.35 times 2.30 times a. Accounts receivable b. Marketable securities c. Fixed assets d. Long-term debt 40 % 5 times Current assets are composed of cash, marketable securities, accounts receivable, and inventory. Lienser Fraktala TAMARA TANT RISHI TRITATE FAST JET PARETSTRANS I nemal osted or annemangen MANENBER HAGPAINT MANSION LARPURCO Calculate the following balance sheet items. (Do not round intermediate calculations. Round your final answers to the nearest whole number.)
Now ant evaluating the balance sheet for Mari Corporation. from the balance sheet you find the following balances Cast and marketable securities = $420,000, Ramunds Race hase = $ 80000 inventony = $t. 120.000. Prepaid Rent Expense= $360. 000 Accrued Taves = $24.00 Accounts Payeble = $1.030.000 Notes Payable = $ 370.000 Net Profit After Tax $ 250.000 What is the amount of Marin's Net Working Capital?
19. Ebasan Company have the following account balances: Cash (net of overdraft of P100,000) Accounts receivable Accounts payable Notes payable Loans payable Income tax payable Warranty obligations Deferred revenue Cumulative, redeemable preference shares at the option of the holder Non-cumulative, non-redeemable preference shares What is the total amount considered as financial liabilities? A. 4,620,000 B. 3,620,000 C. 4,600,000 D. 4,500,000 P300,0000 450,000 1,200,000 500,000 1,800,000 120,000 180,000 240,000 1,000,000 2,000,000
You are given the following income statement and balance sheet: Income Statement Sales EBT Taxes (40%) Net Income Cash A/R Inventories Total CA Fixed Assets Total Assets $15,000 $800 $320 $480 Balance Sheet $100 $2,000 $4.000 Accounts Payable Debt Common Stock Retained Eamings $6,100 $1,900 $8,000 Total Claims $1,000 $4,000 $2,000 $1,000 $8,000 Now make the following forecast and assumptions for the upcoming year: Sales are expected to increase by $5.400 over the coming year. All assets and accounts payable can be expressed as a percentage of sales. The firm's profit margin will remain at 3.2 percent. The firm has a dividend payout rate of 75 percent. Using the equation method, determine the additional funds needed for the coming yea
Use the following information for Taco Swell, Incorporated, (assume the tax rate is 24 percent): Sales Depreciation Cost of goods sold Other expenses Interest Cash Accounts receivable Short-term notes payable Long-term debt Net fixed assets Accounts payable Inventory Dividends 2020 $18,549 Cash flow from assets Cash flow to creditors Cash flow to stockholders 2,416 5,890 1,371 1,130 8,696 11,528 1,714 29,180 72,861 6,293 20,492 2,179 2021 $18,888 2,524 6,771 1,198 1,345 9,367 13,602 1,681 35,329 77,730 6,760 21,902 2,354 For 2021, calculate the cash flow from assets, cash flow to creditors, and cash flow to stockholders. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)