Wolverine World Wide, Incorporated, designs, markets, and licenses casual, industrial, performance outdoor, and athletic footwear and apparel under a variety of brand names, such as Hush Puppies, Wolverine, Merrell, Sperry, and Saucony, to a global market. The following transactions occurred during a recent year. Dollars are in millions. a. Issued common stock to investors for $22.4 cash (example). b. Purchased $1,621.6 of additional inventory on account. c. Paid $67.1 on long-term debt principal and $5.6 in interest on the debt. d. Sold $2,362 of products to customers on account. e. Cost of the products sold was $1,455.6. f. Paid cash dividends of $26 to shareholders. g. Purchased for cash $33.4 in additional property, plant, and equipment. h. Incurred $719.6 in selling expenses, paying three-fourths in cash and owing the rest on account. i. Earned $1 of interest on investments, receiving 80 percent in cash. j. Incurred $31 in interest expense to be paid at the beginning of next year. Required: For each of the transactions, complete the tabulation, indicating the effect (positive value for increase, negative value for decrease, and leave blank if no effect) of each transaction. (Remember that Assets = Liabilities + Stockholders' Equity; Revenues - Expenses = Net Income; and Net Income affects Stockholders' Equity through Retained Earnings.) The first transaction is provided as an example. Note: Enter the increasing and decreasing effect of the transaction on separate lines in the table. Do not net the effects on Assets, Stockholders' Equity or Net Income. Enter your answers in millions rather than in dollars (for example, 22.4 million should be entered as 22.4 rather than 22,400,000). Balance Sheet Income Statement Transaction Assets Liabilities Stockholders' Equity Revenues Expenses Net Income 22.40 22.40 a. b. C. d. e. f. g. g. h j.

A leading AI technology firm ATOOL, is publicly traded on the US stock market with shares currently valued at $15 each. Some information from its annual report of Year 2023, is presented in the following tables (Unit=’1000). Income Statement (2023)Sales $21,800Cost of goods sold $15,050Depreciation $4,150EBIT $2,600Interest $1,830Taxable income $870Taxes (34%) 296Net income $574 Balance Sheet                               2022              2023Current assets      $3,800           $6,930Net fixed assets    $23,650       $26,800Current liabilities    $2,700          $3,150   In a noteworthy turn of events, Elon Musk, a renowned billionaire, has expressed keen interest in acquiring all outstanding shares of ATOOL at an attractive price of $30 per share. Despite the enticing offer, the management team has promptly declined Musk's proposal, opting instead to deploy a series of strategic measures aimed at foiling the acquisition bid. Discuss whether the management team is acting in the…

A leading AI technology firm ATOOL, is publicly traded on the US stock market with shares currently valued at $15 each. Some information from its annual report of Year 2023, is presented in the following tables (Unit=’1000). Income Statement (2023)Sales $21,800Cost of goods sold $15,050Depreciation $4,150EBIT $2,600Interest $1,830Taxable income $870Taxes (34%) 296Net income $574 Balance Sheet                               2022              2023Current assets      $3,800           $6,930Net fixed assets    $23,650       $26,800Current liabilities    $2,700          $3,150 Compute the cash flow from assets (CFFA) of ATOOL for the year 2023 and show how you interpret the number you get for CFFA.

Upton Computers makes bulk purchases of small computers, stocks them in conveniently located warehouses, ships them to its chain of retail stores, and has a staff to advise customers and help them set up their new computers. Uptons balance sheet as of December 31, 2019, is shown here (millions of dollars): Sales for 2019 were 350 million, and net income for the year was 10.5 million, so the firms profit margin was 3.0%. Upton paid dividends of 4.2 million to common stockholders, so its payout ratio was 40%. Its tax rate was 25%, and it operated at full capacity. Assume that all assets/sales ratios, (spontaneous liabilities)/sales ratios, the profit margin, and the payout ratio remain constant in 2020. a. If sales are projected to increase by 70 million, or 20%, during 2020, use the AFN equation to determine Uptons projected external capital requirements. b. Using the AFN equation, determine Uptons self-supporting growth rate. That is, what is the maximum growth rate the firm can achieve without having to employ nonspontaneous external funds? c. Use the forecasted financial statement method to forecast Uptons balance sheet for December 31, 2020. Assume that all additional external capital is raised as a line of credit at the end of the year. (Because the debt is added at the end of the year, there will be no additional interest expense due to the new debt.) Assume Uptons profit margin and dividend payout ratio will be the same in 2020 as they were in 2019. What is the amount of the line of credit reported on the 2020 forecasted balance sheets? (Hint: You dont need to forecast the income statements because the line of credit is taken out on the last day of the year and you are given the projected sales, profit margin, and dividend payout ratio; these figures allow you to calculate the 2020 addition to retained earnings for the balance sheet without actually constructing a full income statement.)