Co. has net Income of $2,937, a profit margin of 6.3 percent, a retention ratio of 45 percent, total assets of $52,800, and total debt of $24,300. Assets, portional to sales. The company maintains a constant dividend payout ratio and debt-equity ratio and is operating at full capacity. What is the maximum sustained next year assuming no new equity is issued? Multiple Choice $2,151 $1,211 $2,804

A company reports the following for the prior year: $1.6 million in sales $1 million in total assets $160, 000 in net income $800, 000 in equity (at the beginning of this prior year) $520, 000 in current assets $480, 000 in fixed assets $48, 000 ir accounts payable $32,000 in accrued liabilities The company projects that the sales will grow at 30 % . Calculate the AFN or this company assuming 80% retention ratio. a. $134,425 b. $127,650 c. $109,600 d. $76,950

White Waters, Inc., has sales of $28 million, total assets of $36 million, and total debt of $11 million with a 6% average interest rate. If the profit margin is 14 percent, the ROA is ______ %.  Round it to two decimal places.

Need Help with this Question

Get Answer

Need answer

Tomey Supply Company’s financial statements for the most recent fiscal year are shown below. The company projects that sales will increase by 27 percent next year. Assume that all costs and assets increase directly with sales. The company has a constant 39 percent dividend payout ratio and has no plans to issue new equity. Any financing needed will be raised through the sale of long-term debt. Prepare pro forma financial statements for the coming year based on this information, and calculate the EFN for Tomey. Tomey Supply Company Income Statement and Balance Sheet.                     Income Statement   Balance Sheet               Revenues $1,768,121   Assets             Costs 1,116,487   Current Assets $280,754           EBT 651,634   Net Fixed Assets 713,655           Taxes (35%) 228,072   Total assets $994,409           Net Income $423,562                       Liabilities and Equity:                   Current Liabilities $167,326                 Long-term…

The most recent financial statements for Crosby, Incorporated, follow. Interest expense will remain constant; the tax rate and the dividend payout rate will also remain constant. Costs, other expenses, current assets, fixed assets, and accounts payable increase spontaneously with sales. Assume the firm is operating at full capacity and the debt-equity ratio is held constant.   CROSBY, INCORPORATED 2020 Income Statement Sales   $ 756,000 Costs   612,000 Other expenses   25,500       Earnings before interest and taxes   $ 118,500 Interest paid   11,200       Taxable income   $ 107,300 Taxes (23%)   24,679       Net income   $ 82,621       Dividends $ 41,340   Addition to retained earnings 41,281     CROSBY, INCORPORATED Balance Sheet as of December 31, 2020 Assets   Liabilities and Owners’ Equity   Current assets   Current liabilities   Cash $ 24,540 Accounts payable $ 58,600 Accounts receivable 33,890 Notes payable 15,500…

White Waters, Inc., has sales of $34 million, total assets of $48 million, and total debt of $11 million with a 6% average interest rate. If the profit margin is 13 percent, the ROA is ______ %.  Round it to two decimal places.

You've collected the following information about Caccamisse, Incorporated: Sales $ 155,000 $12,200 Net income Dividends $ 8,100 Total debt $ 62,000 Total equity $53,000 a. What is the sustainable growth rate for the company? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. If it does grow at this rate, how much new borrowing will take place in the coming year, assuming a constant debt-equity ratio? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. What growth rate could be supported with no outside financing at all? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) a. Sustainable growth rate b. Additional borrowing c. Internal growth rate % %