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Balance Sheet Cash Inventory Fixed assets Total assets $50 Accounts payable $150 Notes payable $600 Long-term debt Equity $800 Total liabilities & nquit $100 10C 350 250 $800

Balance Sheet Cash Inventory Fixed assets Total assets $50 Accounts payable $150 Notes payable $600 Long-term debt Equity $800 Total liabilities & nquit $100 10C 350 250 $800

Essentials Of Investments
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
Problem 1PS
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Suppose that current assets, costs, and accounts payable maintain a constant ratio to sales. The firm retains 40% of earnings. If the firm is producing at only 90% capacity, what is the total external financing needed if sales increase 25%?

Stone Roses Co. Balance Sheet Cash Inventory Fixed assets Total assets $50 Accounts payable $150 Notes payable $600 Long-term debt Taxes (34%) Net income Equity $800 Total liabilities & equity Stone Roses Co. Income statement Sales Costs EBT $100 100 350 250 $800 $800 600 $200 68 $132
Transcribed Image Text:Stone Roses Co. Balance Sheet Cash Inventory Fixed assets Total assets $50 Accounts payable $150 Notes payable $600 Long-term debt Taxes (34%) Net income Equity $800 Total liabilities & equity Stone Roses Co. Income statement Sales Costs EBT $100 100 350 250 $800 $800 600 $200 68 $132
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