cesCurrent assetsCashAccounts receivableInventoryTotalFixed assetsNet plant andequipmentTotal assetsSCOTT, INC.Balance Sheet as of December 31, 2019AssetsEFN$ 297,654Current liabilitiesAccounts payableNotes payable102,960Total$169,380 Long-term debtOwners' equityCommon stock and paid-insurplus21,74044,680$434,000Liabilities and Owners' Equity$603,380Retained earningsTotalTotal liabilities and owners'equity$ 55,90015,100$ 71,000$ 141,000$120,000271,380$ 391,380If the firm is operating at full capacity and no new debt or equity is issued, what externalfinancing is needed to support the 30 percent growth rate in sales? (Do not roundintermediate calculations.)$603,380 The most recent financial statements for Scott, Inc., appear below. Sales for 2020 areprojected to grow by 30 percent. Interest expense will remain constant; the tax rate andthe dividend payout rate also will remain constant. Costs, other expenses, currentassets, fixed assets, and accounts payable increase spontaneously with sales.SCOTT, INC.2019 Income StatementSalesCostsOther expensesEarnings before interestand taxesInterest expenseTaxable incomeTaxes (25%)Net incomeDividendsAddition to retainedearnings$24,97558,275$758,000593,00029,000$ 136,00025,000$ 111,00027,750$ 83,250

External funding required is the amount of finance needed in the form of debt or equity to increase…

assets, fixed assets, and accounts payable increase spontaneously with sales. SCOTT, INC. 2019 Income Statement Sales Costs Other expenses Earnings before interest and taxes Interest expense Taxable income Taxes (25%) Net income $758,000 593,000 29,000 $ 136,000 25,000 $ 111,000 27,750 $ 83,250

assets, fixed assets, and accounts payable increase spontaneously with sales. SCOTT, INC. 2019 Income Statement Sales Costs Other expenses Earnings before interest and taxes Interest expense Taxable income Taxes (25%) Net income $758,000 593,000 29,000 $ 136,000 25,000 $ 111,000 27,750 $ 83,250

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

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Dok ences Refer the following table. Focus Metals Inc. Comparative Balance Sheet Information November 30 (millions of $) Cash Accounts receivable (net) Inventory Plant and equipment (net) Accounts payable Long-term notes payable* Common shares Retained earnings $ Focus Metals Inc. Income Statement Net sales Cost of goods sold Gross profit Operating expenses: Depreciation expense Other expenses Total operating expenses Profit from operations: 2023 23 $ 414 74 2,686 297 1,770 370 760 For Year Ended November 30 (millions of $) $ *90% of the plant and equipment are secured by long-term notes payable. 2,770 213 2022 93 260 67 2,330 370 277 2023 2022 $2,790 $1,992 972 762 $1,818 $1,230 102 $ 745 847 971 $ 102 612 714 516
Ecare Berhad has the following income statement items for 2021: Revenue/Sales RM4,801,139 Finance costs/Interest expense RM293,938 Other items of income RM38,552 Cost of sales (COGS) RM3,917,144 Income tax expenses 35% of taxable income Dividend payment 40% of net profit What is the amount of the firm's earning before tax? Select one: a. RM628,609 b. RM590,057 c. RM408,596 d. RM883,995
Net Sales COGS Depreciation EBIT Interest Taxable Income Taxes Net Income 2019 Income Statement Dividends Additions to Retained Earnings 147 647.74 3,456 1,895 235 1,326 320 1,006 211.26 794.74
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Consider the following financial statement information for Hi-Tech Instruments: 2020 (Thousands of Dollars, except Earnings per Share) Sales revenue $210,000 Cost of goods sold 125,000 Net income 8,300 Dividends 2,600 Earnings per share 4.15 HI-TECH INSTRUMENTS, INC. Balance Sheets (Thousands of Dollars) Dec. 31, 2020 Dec. 31, 2019 Assets Cash $18,300 $18,000 Accounts receivable (net) 46,000 41,000 Inventory 39,500 43,700 Total Current Assets 103,800 102,700 Plant assets (net) 52,600 50,500 Other assets 15,600 13,800 Total Assets $172,000 $167,000 Liabilities and Stockholders’ Equity Notes payable—banks $6,000 $6,000 Accounts payable 22,500 18,700 Accrued liabilities 16,500 21,000 Total Current Liabilities 45,000 45,700 9% Bonds payable 40,000 40,000 Total Liabilities 85,000 85,700 Common stock* 50,000 50,000 Retained earnings 37,000 31,300 Total Stockholders’ Equity 87,000 81,300 Total Liabilities and…
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