Aneles Inc.’s Balance Sheet as of December 31, 2020 is as follows:In 2020, the company reported sales of 3,000,000, Net Income of 60,000, and dividends of 10,000. Sales are projected to increase by 10% next year. Both Profit Margin and the Dividend Pay-Out Ratio will remain the same. Operations are at full capacity. Assume external fund will be raised through issuances of Long-Term Obligations or Bonds.A. How much Long-term Debt will the company have to issue next year?B. If the operations are not in full capacity, what will be AFN? Problem 4Aneles Inc.'s Balance Sheet as of December 31, 2020 is as follows:Current Assets800,000.00Accounts Payable200,000.00Notes Payable200,000.00Long-term Liabilities350,000.00Fixed Assets300,000.00Equity350,000.001,100,000.001,100,000.00In 2020, the company reported sales of 3,000,000, Net Income of 60,000, and dividends of10,000. Sales are projected to increase by 10% next year. Both Profit Margin and the DividendPay-Out Ratio will remain the same. Operations are at full capacity. Assume external fund willbe raised through issuances of Long-Term Obligations or Bonds.A. How much Long-term Debt will the company have to issue next year?B. If the operations are not in full capacity, what will be AFN?

Determining the additional funds needed: The additional funds needed is the net of the spontaneous…

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ds of 10,000. Sales are projected to increase by 10% next year. Both Profit Margin and the Dividend Pay-Out Rati

Fundamentals Of Financial Management, Concise Edition (mindtap Course List)

10th Edition

ISBN:9781337902571

Author:Eugene F. Brigham, Joel F. Houston

Publisher:Eugene F. Brigham, Joel F. Houston

Chapter3: Financial Statements, Cash Flow, And Taxes

Section: Chapter Questions

Problem 19SP

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Jackson Co. has the following balance sheet as of December 31, 2020. Current assets P600,000 Fixed assets 400,000 Total assets P1,000,000 Accounts payable P100,000 Accrued liabilities 100,000 Notes payable 100,000 Long-term debt 300,000 Total common equity 400,000 Total liabilities and equity P1,000,000 In 2020, the company reported sales of P5 million, net income of P100,000, and dividends of P60,000. The company anticipates its sales will increase 20 percent in 2021 and its dividend payout will remain at 60 percent. Assume the company is at full capacity, so its assets and spontaneous liabilities will increase proportionately with an increase in sales. Assume the company uses the AFN formula and all additional funds needed (AFN) will come from issuing new long-term debt. Given its forecast, how much long-term debt will the company have to issue in 2021?
Daryyu Inc.’s Balance Sheet as of December 31, 2022 is as follows: Current Assets P 800,000.00 Accounts Payable P 200,000.00 Notes Payable 200,000.00 Long-term Liabilities 350,000.00 Fixed Assets 300,000.00 Equity 350,000.00 1,100,000.00 1,100,000.00 In 2022, the company reported sales of 3,000,000, Net Income of 60,000, and dividends of 10,000. Sales are projected to increase by 10% next year. Both Profit Margin and the Dividend Pay-Out Ratio will remain the same. Operations are at full capacity. Assume external fund will be raised through issuances of Long-Term Obligations or Bonds. A. How much Long-term Debt will the company have to issue next year? B. If the operations are not in full capacity, what will be your answer?
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HCB, Inc.'s financial partial statements are shown below. HCB Income Statement 2021 Sales 2,000.0 Assets 2021 Cash 86.0 Accounts receivable 360.0 Inventory 320.0 Short-term investments 223.0 Total current assets 989.0 Net fixed assets 1,940.0 Total assets 2,929.0 Liabilities and equity 2021 Accounts payable 200.0 Accruals 240.0 Short-term debt 292.9 Total current liabilities 732.9 Long-term debt 1,757.4 Total liabilities 2,490.3 Par + paid in capital less treasury 238.7 Retained earnings 200.0…
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Suppose the Crane Ltd's 2020 financial statements contain the following selected data (in millions). Current assets Total assets Current liabilities Total liabilities NT$3,536.0 31,408.0 3,016.0 16,640.0 Compute the following values. Interest expense Income taxes Net income NT$520.0 (a) Debt to assets ratio. (Round to O decimal places, e.g. 62%.) 1,976.0 4,590.0 (b) Times interest earned. (Round to 2 decimal places, e.g. 6.25.) % times
As of December 31, 2020, Casablanca Corporation reported the following items in its balance sheet: Cash P240,000 ; Receivables P520,000 Inventory P350,000; Property and Plant P3,000,000; Equipment P850,000; Accounts payables P400,000; short-term notes payables P500,000; long-term debt P1,000,000; Weighted average of outstanding share in 2020- 250,000. Casablanca Corp. contracted with a third party appraiser to determine how much is the replacement cost of its assets. Based on the report of the appraiser, the property and plant has replacement cost of 125% of its reported value. On the other hand, the equipment only commands replacement cost of 70% of its value. According to the appraiser, the equipment was designed using an old technology thus the lower replacement cost. Other assets and liabilities are valued fairly.---- How much is the none-current asset reflected in the books of Casablanca Corporation as of December 31, 2020? how much is the book value per share of Casablanca…
Financial information for Powell Panther Corporation is shown below: Powell Panther Corporation: Income Statements for Year Ending December 31 (millions of dollars) 2021 2020 Sales $ 2,500.0 $ 2,000.0 Operating costs excluding depreciation and amortization 1,938.0 1,700.0 EBITDA $ 562.0 $ 300.0 Depreciation and amortization 62.0 54.0 Earnings before interest and taxes (EBIT) $ 500.0 $ 246.0 Interest 55.0 44.0 Earnings before taxes (EBT) $ 445.0 $ 202.0 Taxes (25%) 178.0 80.8 Net income $ 267.0 $ 121.2 Common dividends $ 240.3 $ 97.0 Powell Panther Corporation: Balance Sheets as of December 31 (millions of dollars) 2021 2020 Assets Cash and equivalents $ 36.0 $ 30.0 Accounts receivable 375.0 300.0 Inventories 468.0 360.0 Total current assets $ 879.0 $ 690.0 Net plant and equipment 621.0 540.0 Total assets $ 1,500.0 $ 1,230.0 Liabilities and Equity Accounts payable $ 250.0 $ 200.0 Accruals 75.0…
Using the information provided below:Rubialac PaintsSelected Income Statement Items, 2020Cash Sales $2,500,000Credit Sales $9,500,000Total Sales $12,000,000COGS 7,000,000 Rubialac PaintsSelected Balance Sheet Accounts12/31/2020 12/31/19 ChangeAccounts Receivable $550,000 $400,000 $150,000Inventory $275,000 $250,000 $25,000Accounts Payable $150,000 $110,000 $40,000 What is the inventory turnover for Rubialac Paints? What is the average production cycle for the firm? What is the average collection cycle? What could Eagle Paints do to reduce the average collection cycle?
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