BBP, Inc., with sales of $500,000, has the following balance sheet: The firm earns 15 percent on
Question:
BBP, Inc., with sales of $500,000, has the following balance sheet:
The firm earns 15 percent on sales and distributes 25 percent of its earnings. Using the percent of sales, forecast the new balance sheet for sales of $600,000 assuming that cash changes with sales and that the firm is not operating at capacity. Will the firm need external funds? Would your answer be different if the firm distributed all of its earnings?
Transcribed Image Text:
BBP, Incorporated Balance Sheet as of 12/31/X0 Assets Cash Accounts receivable Inventory Current assets Fixed assets Liabilities and Equity Accounts payable 15,000 20,000 50,000 85,000 100,000 165,000 $350,000 Total labilities and equity $350,000 $ 25,000 50,000 Accruals 75,000 Notes payable 50,000 Current liabilities 200,000 Common stock Retained earnings Total assets
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 60% (15 reviews)
CashSales 25000500000 5 Accounts receivableSales 50000500000 10 InventorySales 7500...View the full answer
Answered By
Mustafa olang
Please accept my enthusiastic application to solutionInn. I would love the opportunity to be a hardworking, passionate member of your tutoring program. As soon as I read the description of the program, I knew I was a well-qualified candidate for the position.
I have extensive tutoring experience in a variety of fields. I have tutored in English as well as Calculus. I have helped students learn to analyze literature, write essays, understand historical events, and graph parabolas. Your program requires that tutors be able to assist students in multiple subjects, and my experience would allow me to do just that.
You also state in your job posting that you require tutors that can work with students of all ages. As a summer camp counselor, I have experience working with preschool and kindergarten-age students. I have also tutored middle school students in reading, as well as college and high school students. Through these tutoring and counseling positions, I have learned how to best teach each age group. For example, I created songs to teach my three-year-old campers the camp rules, but I gave my college student daily quizzes to help her prepare for exams.
I am passionate about helping students improve in all academic subjects. I still remember my excitement when my calculus student received her first “A” on a quiz! I am confident that my passion and experience are the qualities you are looking for at solutionInn. Thank you so much for your time and consideration.
4.80+
2+ Reviews
10+ Question Solved
Related Book For
Basic Finance An Introduction to Financial Institutions Investments and Management
ISBN: 978-1111820633
10th edition
Authors: Herbert B. Mayo
Question Posted:
Students also viewed these Accounting questions
-
The Southwick Company has the following balance sheet ($000): Financial Ratios Current ratio ........ 1.92 Quick ratio ....... 1.08 Debt-to-equity ratio ...... 0.79 Evaluate the impact of each of the...
-
The OToole Company has the following balance sheet data (in millions): Net income for 20X2 was $60 million. Net cash inflow from operating activities was $72 million. Cash dividends paid were $10...
-
The Jawarski Company has the following balance sheet data ($ in millions): Net income for 20X1 was $55 million. Net cash inflow from operating activities was $88 million. Cash dividends paid were $14...
-
On 1 January 2022, ABC Company issued 10,000 shares of common stock for $100,000. On 31 December 2022, the company declared and paid dividends of $10,000. Calculate the earnings per share and the...
-
Rory invested a total of $7800 in shares of ABC Ltd. and XYZ Inc. One year later the investment was worth $9310, after the shares of ABC had increased in value by 15% and the shares of XYZ were up...
-
Ernest runs an art gallery. He organises exhibitions at which painters and sculptors show their work. If a piece of art work is sold, Ernest takes a commission of 50% of the selling price. He banks...
-
16. Refer to Figure 2. a. Verify that the price of a European put option is $0.0564. b. Verify that the price of an American put option is $0.1144. Be sure to allow for the possibility of exercise at...
-
MobileCash Corporation operates a fleet of armoured cars that make scheduled pickups and deliveries for its customers. The company is implementing an ABC system that has four activity cost pools:...
-
Special Order, Traditional Analysis gallon, while Top Quality Oil sells for $ 8 . 0 0 per gallon. MangiareBuono label. would take place at a price of $ 3 . 0 1 per gallon. Assume that no significant...
-
The Morton Ward Company is considering the introduction of a new product that is believed to have a 50-50 chance of being successful. One option is to try out the product in a test market, at an...
-
EEM, Inc. has the following balance sheet: It has estimated the following relationships between sales and the various assets and liabilities that vary with the level of sales: Accounts receivable =...
-
With sales of $350,000, MJM, Inc. is operating at capacity but management anticipates that sales will grow 25 percent during the coming year. The company earns 10 percent on sales and distributes 50...
-
The ASCII code assigns a decimal number between 0 and 127 for each character on a computer keyboard. When a key is pressed, the computer converts the character to an 8-bit binary number. For example,...
-
Leslie Sporting Goods is a locally owned store that specializes in printing team jerseys. The majority of its business comes from orders for various local teams and organizations. While Leslie's...
-
Euclid acquires a 7-year class asset on May 9, 2022, for $153,000 (the only asset acquired during the year). Euclid does not elect immediate expensing under 179. He does not claim any available...
-
Williams & Sons last year reported sales of $10 million, cost of goods sold (COGS) of $8 million, and an inventory turnover ratio of 2. The company is now adopting a new inventory system. If the new...
-
A ceramic manufacturer promised to deliver 25 crates of vases to a Japanese importer under a "CFR" INTERCOM agreement. During transit, however, a large number of vases were broken. The buyer wants to...
-
A company receives $364, of which $23 is for sales tax. The journal entry to record the sale would include a ?
-
Why is it important to distinguish between a property tax and an excise tax? What characteristics are associated with these two levies?
-
Draw and label the E and Z isomers for each of the following compounds: 1. CH3CH2CH==CHCH3 2. 3. 4. CH,CH2C CHCH2CH Cl CH3CH2CH2CH2 CH CH2CCCH2CI CHCH3 CH3 HOCH CH CCC CH O-CH C(CH
-
In the case of AHERF, the misstated reports went beyond annual financial statements and included municipal securities disclosure reports known as Nationally Recognized Municipal ____________...
-
Given the following information, construct the firms balance sheet: Cash and cash equivalents Accumulated depreciation on plant and equipment Plant and equipment Accrued wages Long-term debt...
-
From the following information, construct a simple income statement and a balance sheet: Sales Finished goods Long-term debt Raw materials $1,000,000 200,000 300,000 100,000 Cash 50,000 Cost of goods...
-
Compute and interpret the financial ratios covered.
-
Docs Auto Body has budgeted the costs of the following repair time and parts activities for 2009: Doc's budgets 6,000 hours of repair time in 2009. A profit margin of $7 per labour hour will be added...
-
QUESTION 28 In a perpetual inventory system, the cost of inventory sold is: Debited to accounts receivable. Debited to cost of goods sold. O Not recorded at the time goods are sold. O Credited to...
-
The following financial statements and additional information are reported. IKIBAN INC. Comparative Balance Sheets June 30, 2019 and 2018 2019 2018 $105,709 69,500 66,800 4,700 246,700 127,eee...
Study smarter with the SolutionInn App