Deprey, Incorporated, had equity of $145,000 at the beginning of the year. At the end of the year, the company had total assets of $300,000. During the year, the company sold no new equity. Net income for the year was $31,000 and dividends were $3,800. 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. What is the sustainable growth rate if you use the formula ROE × b and beginning of period equity? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) c. What is the sustainable growth rate if you use end of period equity in this formula? (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. ROEx b (using beginning of period equity) % %

At last year’s end, total assets for Roberts Inc. were $1.2 million and accounts payable were $375,000. Sales, which last year were $2.5 million, are expected to increase by 25 percent this year. Total assets and accounts payable are proportional to sales, and that relationship will be maintained. Robert Inc. typically uses no current liabilities other than accounts payable. Common stock amounted to $425,000 last year, and retained earnings were $295,000. Roberts Inc. plans to sell new common stock in the amount of $75,000. The Firm’s profit margin on sales is 6 percent; and 60 percent of earnings will be retained. Set up Roberts Inc.’s last year balance sheet, to the extent possible, based on the information provided in this problem. Based on the balance sheet setup in Part a above, determine how much was Roberts Inc.’s long-term debt last year? Perform financial forecasting using percent of sales method (i.e., constant ratio method; do not use the AFN Equation) to determine how much…

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Tomey Supply Company’s financial statements for the most recent fiscal year are shown below. The company projects that sales will increase by 11 percent next year. Assume that all costs and assets increase directly with sales. The company has a constant 35 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 debt 319,456       Common Stock 200,000       Retained Earnings 307,627       Total liabilities…

DEF Company is expected to have net income of $250,000 this year. The company traditionally pays out 40 percent of its net income as a dividend. DEF started the year with retained earnings of $490,500. What is their expected retained earnings at the end of the year?

A company had sales of $600 and costs of $300. Depreciation was an additional $150, and interest paid was $30. Taxes were 40% of pretax income. Dividends were $30. Beginning net fixed assets were $500 and ending net fixed assets were $750. The company started the year with a net working capital of $510 and ended with $550. No shares of stock were issued that year A. Calculate net income (nearest dollar without dollar sign ($) or comma, e.g. 15000. Negative cash flow is -15000 B. Calculate operating cash flow (nearest dollar without dollar sign ($) or comma, e.g. 15000) Negative cash flow is -15000

Last year, Lakesha’s Lounge Furniture Corporation had an ROA of 5.8 percent and a dividend payout ratio of 34 percent.   What is the internal growth rate? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Esther’s Egg Farm is constructing its pro forma financial statements for this year. At year end, assets were $400,000 and accounts payable (the only current liabilities account) were $125,000. Last year’s sales were $500,000. Esther’s expects to grow by 15 percent this year. Assets and accounts payable are expected to grow proportionally to sales. Common stock currently equals $140,000, and retained earnings are $98,000. Esther’s plans to sell $15,000 of new common stock this year. The firm’s profit margin on sales is 6 percent, and 40 percent of earnings will be paid out as dividends. How much new long-term debt financing will Esther’s need this year to finance its expected growth? Esther’s is currently operating at full capacity.