10 Problem 4-29 Percent-of-sales method (L04-3) | Ma- Shona national clothing chan hadas maisto The business hotely el mano? percent and a dividend payout ratio of 20 cent Themen who Welch A ca M at det SA her 18 TOAT 18 10 10 The 'wing what the present the core balans and Wool A les increase of 20 pct is for at for Albance when we expected to many form ork and retardas Nochescheduled in the number of colock ding with aced the provided poly of the man The theory Willemang bered for company recome ONO b. What would be the need forming the town to 350 percet and the one was increased to 50 percent New should be indicated by a mi. Do not found immediate calculation your answer in dollar, not millions $123456731 Seved Problem 4-29 Percent-of-sales method (L04-3) Conn Man's Shops, a national clothing chain, had sales of $360 million last year The business has a steady net profit margin of 7 percent and a dividend payout ratio of 20 percent. The balance sheet for the end of last year is shown Assets Cash Accounts receivable Inventory plant and equipment Balance Sheet End of Year (in willions) Liabilities and Stockholders' Equity $ 23 Accounts payable 38 Accrued expenses 80 other payables 147 Common stock Retained earnings $ 288 Total Habilities and stockholders' equila $ 68 29 35 46 110 $ 288 Total assets The firm's marketing staff has told the president that in the coming year there will be a large increase in the demand for overcoats and wool slacks. A sales increase of 20 percent is forecast for the company, The firm's marketing staff has told the president that in the coming year there will be a large increase in the demand for overcoats and wool stacks A sales increase of 20 percentis forecast for the company All balance sheet items are expected to maletain the same percent of sales relationships as fast yeat except for common stock and retalsed earnings. No change is scheduled in the number of common stock shares outstanding, and retained emings will change as dictated by the profits and dividend policy of the firm (Remember, the net profit margin is 7 percent) *This includes feed assets since the firm at full capacity .. Wel external financing be equired for the company during the coming year! Yes ONO b. What would be the need for external financing of the net profit margin went to 8 50 percent and the dividend payout ratio was Increased to 50 percent? (Negative amount should be indicated by a minusulon. Do not round intermediate calculations Enter your answer in dollars, not millions (9. 31,234,567) Required towns Problem 4-29 Percent of sales method (L04-3) Conn Man's Shops, a national clothing chain, had sales of $360 million last year. The business has a steady net profit margin of 7 percent and a dividend payout ratio of 20 percent. The balance sheet for the end of last year is shown. Balance Sheet End of Year (in $ millions) Liabilities and Stockholders' Equity Cash $ 23 Accounts payable $ 68 Accounts receivable 38 Accrued expenses Inventory to other payables Plant and equipment 147 Common stock Retained earnings Total assets 5200 Total ties and stockholders' equity Assets 110 S280 The firm's marketing staff has told the president that in the coming year there will be a large increase in the demand for overcoats and wool slacks. A sales increase of 20 percent is forecast for the company. All balance sheet items are expected to maintain the same percent-of-sales relationships as last year,* except for common stock and retained earnings. No change is scheduled in the number of common stock shares outstanding, and retained earnings will change as dictated by the profits and dividend policy of the firm. (Remember, the net profit margin is 7 percent.) *This includes fixed assets, since the firm is at full capacity. a. Will external financing be required for the company during the coming year? Yes No b. What would be the need for external financing if the net profit margin went up to 8.50 percent and the dividend payout ratio was increased to 50 percent? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Enter your answer in dollars, not millions, (e.g., $1,234,567).) b. What would be the need for external financing if the net profit margin went up to 8.50 percent and the dividend payout ratio was increased to 50 percent? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Enter your answer in dollars, not millions, (e.g., $1,234,567).) Required new funds