Green Caterpillar Garden Supplies Inc. reported sales of $720,000 at the end of last year, but this year, sales are expected to grow by 9%. Green Caterpillar expects to maintain its current profit margin of 22% and dividend payout ratio of 15%. The following information was taken from Green Caterpillar’s balance sheet: Total assets: $400,000 Accounts payable: $80,000 Notes payable: $30,000 Accrued liabilities: $60,000   Based on the AFN equation, the firm’s AFN for the current year is    .   A positively signed AFN value represents: A shortage of internally generated funds that must be raised outside the company to finance the company’s forecasted future growth.   A point at which the funds generated within the firm equal the demands for funds to finance the firm’s future expected sales requirements.   A surplus of internally generated funds that can be invested in physical or financial assets or paid out as additional dividends.     Because of its excess funds, Green Caterpillar Garden Supplies Inc. is thinking about raising its dividend payout ratio to satisfy shareholders. Green Caterpillar could pay out    of its earnings to shareholders without needing to raise any external capital.(Hint: What can Green Caterpillar increase its dividend payout ratio to before the AFN becomes positive?)

Strider Outfitters declared and paid a cash dividend of $8,900 in the current year. Its comparative financial statements, prepared at December 31, reported the following summarized information: Current Year Previous Year Income Statement $ 225,000 98,000 127,000 59,000 6,300 $ 191,000 94,000 Sales Revenue Cost of Goods Sold Gross Profit 97,000 51,400 6,300 Operating Expenses Interest Expense Income before Income Tax Expense Income Tax Expense (30%) 61,700 18,510 39,300 11,790 $ 43,190 $ 27,510 Net Income Balance Sheet $ 99,515 40,000 48,000 118,000 $ 15,000 35,000 61,000 128,000 Cash Accounts Receivable, Net Inventory Property and Equipment, Net $ 305,515 $ 65,000 $ 239,000 $ 32,700 Total Assets Accounts Payable Income Tax Payable Notes Payable (long-term) 1,575 63,000 129,575 103,800 72,140 1,650 63,000 97,350 103,800 37,850 $ 239,000 Total Liabilities Common Stock (par $10) Retained Earnings Total Liabilities and Stockholders' Equity $ 305,515 Required: 1. Compute the gross profit…

A. Income StatementAt the end of the last year, King Power Company achieved $6 million in income (EBITDA). Depreciation expense was $1.2 million, interest expense was $800,000 and the corporate tax rate was 35%. At the end of the fiscal year the company had current assets totaling $12 million, $4 million in accounts payable, $1.5 million in accrued liabilities, $1.3 million in other payables, and $8 million in property, plant, and equipment. Assume that King Power has no excess cash, uses debt and equity to finance its operations, has no current liabilities, and recognizes depreciation periodically. Determine the company's net income or loss. Explain how this result can help the manager in making decisions in the company.2. Calculate net and operating working capital. Explain the difference between the two results.3. If the company had $6 million in property, plant, and equipment in the previous year and net operating working capital remained constant, what is the company's available…

The most recent financial statements for Camryn, Incorporated, are shown here (assuming no income taxes): Income Statement Sales Costs Balance Sheet $6,500 Assets $23,500 Debt $ 9,500 4,610 Equity 14,000 Net income $1,890 Total $ 23,500 Total $ 23,500 Assets and costs are proportional to sales. Debt and equity are not. No dividends are paid. Next year's sales are projected to be $7,150. What is the external financing needed? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) External financing needed

Last year, Harrington Inc. had sales of $325,000 and a net income of $19,000.  Its year-end assets were $250,000.  The firms total debt/total assets was 55%.  What was the ROE?

The statements of earnings for Pruitt Company summarized for a four-year period show the following (amounts in thousands of dollars): Sales revenue Cost of sales Gross profit Operating expenses Pretax earnings Income tax expense (30%) Net earnings Sales revenue Cost of sales Gross profit 2023 2022 2024 $3,325 $3,750 $4,000 2,155 2,277 2,432 1,170 1,473 1,568 620 643 668 550 830 900 165 249 270 $ 385 $ 581 $ 630 Operating expenses Pretax earnings Income tax expense Net earnings An audit revealed that in determining these amounts, the ending inventory for 2022 was understated by $48. Required: 1. Revise these statements of earnings to reflect the correct amounts. (Do not round intermediate calculations. Round the final answers to the nearest dollar amount.) PRUITT COMPANY Corrected Statement of Earnings 2024 2023 2021 $4,275 2,763 1,512 2022 672 840 252 $ 588 2021

the income statement for Stretch-Tape Corporation reports net sales of $439,900 and net income of $54,780. Average total assets for the year are $830,000. Stockholders’ equity at the beginning of the year was $530,000, and $23,000 was paid to stockholders as dividends during the year. There were no other stockholders’ equity transactions that occurred during the year.Required:Calculate the return on assets, profit margin, asset turnover, and return on equity ratios. (Round your answers to 1 decimal place.)     Profitability Ratios Return on assets 6.6 % Profit margin 12.5 % Asset turnover   times Return on equity   %

The following information ($ in millions) comes from a recent annual report of Orinoco.com, Incorporated: Net sales $ 10,831 Total assets 4,431 End of year balance in cash 1,067 Total stockholders' equity 338 Gross profit (Sales − Cost of Sales) 2,654 Net increase in cash for the year 11 Operating expenses 2,064 Net operating cash flow 717 Other income (expense), net (20) Compute Orinoco's cost of goods sold for the year.   Multiple Choice   $8,767   $5,148   $7,212   $8,177

Stephens, Inc. (SI) reported net income of $120,000 for the fiscal year that just ended and expects net income to grow at 5% per year indefinitely.  SI also reported current assets of $700,000, net fixed assets of $220,000 and total assets of $920,00 for most recent fiscal year.  SI’s current liabilities of $100,000 and long-term debt of $540,000.  Assuming that retained earnings is the only other equity account, then what did SI report for owner’s equity in the most recent fiscal year?     Select one: a. $232,000 b. $280,000 c. $380,000 d. Cannot be determined with the information given. e. None of the above.

Hendo Inc. is constructing its pro forma financial statements for this year. At years end, Assets were $650,000 and Accounts Payable (the only liabilities account) was $175,000. Sales for the year were $825,000. Hendo expects to grow by 12% this year. Assets and Accounts Payable are expected to grow proportionally to Sales. Common Stock currently equals $175,000 and Retained Earnings are $127,000. Hendo plans to sell $18,000 of new common stock this year. The firm's profit margin on Sales is 5.5%, and 45% of its earnings will be paid out in dividends. How much NEW long-term debt financing will Hendo need this year to finance its expected growth? Hendo is currently operating at full capapcity.