Model Corp.'s most recent balance sheet and income statement are given below (all numbers in $...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Model Corp.'s most recent balance sheet and income statement are given below (all numbers in $ million): Liabilities and Equity Accounts payable 147 Current liabilities 147 Lang-term debt 196 Total liabilities 343 Equity 147 Total llab. & equity 490 Assets Cash 49 Accounts receivable 98 Inventory Current assets Machinery Total assets 294 195 490 Income statement Sales Costs Depreciation EBIT Interest Taxable income Taxes Net income 110 66 22 22 7.84 14.16 4.814 9.346 Sales, costs including depreciation), assets and liabilities are expected to grow by 37% next year, except that the tax rate and long-term debt wil stay constant. The company wil pay out 80% of net income as dividends next year. What will be the net income next year (in $ million)? What should be the equity balance by the end of next year as a result of net Income and dividend payout but before any EFN is funded (in $ million)? What is the external financing needed (EFN) for next year (in $ million)? Model Corp.'s most recent balance sheet and income statement are given below (all numbers in $ million): Liabilities and Equity Accounts payable 147 Current liabilities 147 Lang-term debt 196 Total liabilities 343 Equity 147 Total llab. & equity 490 Assets Cash 49 Accounts receivable 98 Inventory Current assets Machinery Total assets 294 195 490 Income statement Sales Costs Depreciation EBIT Interest Taxable income Taxes Net income 110 66 22 22 7.84 14.16 4.814 9.346 Sales, costs including depreciation), assets and liabilities are expected to grow by 37% next year, except that the tax rate and long-term debt wil stay constant. The company wil pay out 80% of net income as dividends next year. What will be the net income next year (in $ million)? What should be the equity balance by the end of next year as a result of net Income and dividend payout but before any EFN is funded (in $ million)? What is the external financing needed (EFN) for next year (in $ million)?
Expert Answer:
Answer rating: 100% (QA)
Answer Calculation of Tax rate Total tax Taxable income 3468 102 34 Expected growth rate 28 for sale... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-0324592375
17th Edition
Authors: James D. Stice, Earl K. Stice, Fred Skousen
Posted Date:
Students also viewed these accounting questions
-
The most recent balance sheet and income statement of Helle Corporation appear below: Comparative Balance Sheet Ending Balance Beginning Balance Assets: Cash and cash...
-
The following balance sheet and income statement are for Weber Industries. The firms stock currently is priced at $6.00 per share. Calculate and interpret the companys Z score. Weber Industries...
-
The Davidson Corporation's balance sheet and income statement are provided here. Davidson Corporation: Income Statement for Year Ending December 31, 2012 (Millions of Dollars)...
-
Assuming 10% minimum required reserve ratio, 5% excess reserve ratio, and people holding 10% of cash received at home (not deposited in the banks), the money multiplier is equal to Select one: a....
-
In China, feng shui is important in business, whereas in Japan, nemaswashio is important. What are analogous American terms and practices?
-
Develop cost functions for the PROJECT, UNION, INTERSECTION, SET DIFFERENCE, and CARTESIAN PRODUCT algorithms discussed in section19.4.
-
Consider the following three-player game tree. At a leaf, the topmost payoff is to player I, the middle payoff is to player II, and the bottom payoff is to player III. (a) How many strategy profiles...
-
The following financial information was taken from the books of Zone Health Club, a small spa and fitness club: Account Balances as of December 31, 2016 Accounts Receivable ......... $12,450 Accounts...
-
View Policies Current Attempt in Progress Waterway Electronics Inc. produces and sells two models of calculators, XQ-103 and XQ-104. The calculators sell for $10 and $20, respectively. Because of the...
-
The proposed rates were not in the range the CEO expected given the pricing analysis. The CEO has asked the pricing actuary to verify the total projected loss cost excluding potential large storm...
-
a Filing Segment MLG, Inc Order Key Unit Unit 2 Unit 3 Unit 4 4 MLG Inc b M LG Associates 3 M L G Associates Will Jones 1 Jones Will d Wm. S. Jones 2 Jones Wm S
-
The Morgan Corporation manufactures filing cabinets in two operations: machining and finishing. It provides the following information: Annual production (units) Machining Finishing Annual capacity...
-
Sonic Corporation purchased and installed electronic payment equipment at its drive-in restaurants in San Marcos, TX, at a cost of $59,400. The equipment has an estimated residual value of $2,700....
-
! Required Information [The following Information applies to the questions displayed below.] A manufactured product has the following information for June. Direct materials Direct labor Overhead...
-
Air Pollution Tiny particles suspended in the air are necessary for clouds to form. Experts believe that air pollutants may cause an increase in cloud cover. From 1930 to 1980 the percentage of cloud...
-
In 2026, Dubois Corporation has an actual return on plan assets of $135,000. The expected rate of return is 10%. The fair value of plan assets on January 1, 2026 was $900,000, and the fair value of...
-
Many real life problems produce a histogram that is a symmetric, unimodal, and bell-shaped continuous probability distribution. For example: height, blood pressure, and cholesterol level. However,...
-
From the choice of simple moving average, exponential smoothing, and linear regression analysis, which forecasting technique would you consider the most accurate? Why? please write it in word...
-
The company reported the following information for the year: Beginning accounts receivable . . . . . . . . . . . . . . . . . . . . . . . $2,000 Sales . . . . . . . . . . . . . . . . . . . . . . . . ....
-
During the year, the company sold equipment that originally cost $61,000. Accumulated depreciation associated with the equipment was $17,500. A gain of $8,500 on the sale of the equipment was...
-
Trans America Trust Co. owns both trading and available-for-sale securities. The following securities were owned on December 31, 2010: The following transactions occurred during 2011: (a) Sold 500...
-
Fem Company purchased goods on January 1,2020 , and issued a two-year, \(\$ 2,500\) note with a \(5 \%\) stated rate. The fair value of the goods is \(\$ 2,366\). The note requires annual interest...
-
Stonewall Corporation issued \(\$ 20,000\) of \(5 \%, 10\)-year convertible bonds. Each \(\$ 1,000\) bond is convertible to 10 shares of common stock (par \$50) of Stonewall Corporation. The bonds...
-
Darien Inc. redeemed \(\$ 5,000\) of its bonds at 102 on January 1, 2020. At this date, the unamortized discount was \(\$ 690\). Prepare the journal entry on January 1, 2020, for the bond redemption....
Study smarter with the SolutionInn App