FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A company determines that sales will rise from $300,000 to $700,000 next year. Spontaneous assets are 70% of sales and spontaneous liabilities are 30% of

A company determines that sales will rise from $300,000 to $700,000 next year. Spontaneous assets are 70% of sales and spontaneous liabilities are 30% of sales. The company has a 10% profit margin and a 40% dividend payout ratio. What is the level of required new funds?

Step by Step Solution

★★★★★

3.39 Rating (152 Votes )

There are 3 Steps involved in it

Step: 1

The level of new funds required P... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Accounting

Intermediate Accounting

Authors: Loren A. Nikolai, John D. Bazley, Jefferson P. Jones

11th edition

978-0538467087, 9781111781262, 538467088, 1111781265, 978-0324659139

More Books

Students also viewed these Finance questions

Question

★★★★★
If a company determines that a provision has a 51% chance of occurring, would it be required to accrue the provision under IFRS? Under U.S. GAAP? Be sure to explain your answer.

Answered: 1 week ago

Question

★★★★★
A company with a high dividend payout ratio is a better investment than a company with a low dividend payout ratio. Do you agree? Explain.

Answered: 1 week ago

Question

★★★★★
The dividend payout ratio for Deedle Company is 40%. What does this mean?

Answered: 1 week ago

Question

★★★★★
A set of 2M biorthogonal signals is obtained from a set of M orthogonal signals by augmenting it with the negative of each signal in the set. (a) The extension of orthogonal to biorthogonal signals...

Answered: 1 week ago

Question

★★★★★
Convert the following decimal numbers to their hexadecimal equivalents: a. 16 b. 80 c. 2560 d. 3000 e. 62,500

Answered: 1 week ago

Question

★★★★★
The following data give the starting salary for students who recently graduated from a local university and accepted jobs soon after graduation. The starting salary, grade-point average (GPA), and...

Answered: 1 week ago

Question

★★★★★
=+What are the factors and levels?

Answered: 1 week ago

Question

★★★★★
An analyst for an oil company has developed a formal linear regression model to predict the sales of 50 of their filling stations. The estimated model is Ŷ = b0 + b1 X1 where...

Answered: 1 week ago

Question

★★★★★
Problem 6-19 Variable Costing Income Statement; Reconciliation [LO6-2, LO6-3 During Heaton Company's first two years of operations, it reported absorption costing net operating income as follows: ear...

Answered: 1 week ago

Question

★★★★★
Susan Jones would like her investment portfolio to be selected from a combination of three stocks Alpha, Beta, and Gamma. Let variables A, B, and G denote the percentages of the portfolio devoted to...

Answered: 1 week ago

Question

★★★★★
Mr Vincent believes in letting his learners decide how they will behave in the Life Orientation classroom. He is there to support them in making informed decisions for their success. Mr Vincent uses...

Answered: 1 week ago

Question

★★★★★
Let's consider a binomial probability distribution. Go to https://stapplet.com/binom.html a.Enter p=.5 and n is equal to 4 then click 'plot distribution'. What is the shape of the distribution (for...

Answered: 1 week ago

Question

★★★★★
The marks on a statistics midterm test are normally distributed with a mean of 75 and a standard deviation of 4. a. What proportion of the class has a midterm test mark that is less than 80? Round...

Answered: 1 week ago

Question

★★★★★
Winkin, Blinkin, and Nod are equal shareholders in SleepEZ, an S corporation. In the conditions listed below, how much income should each report from SleepEZ for 2023 under both the daily allocation...

Answered: 1 week ago

Question

★★★★★
Question 1 of 10. Which of the following should NOT be used as a source of contractor performance information? O Commercial companies O Open public forums Financial institutions Publications Mark for...

Answered: 1 week ago

Question

★★★★★
You have been appointed as the manager overseeing the operations of several subsidiaries in Latin America. You are posted to a country where drug trafficking and lawlessness are rampant. One day, a...

Answered: 1 week ago

Question

★★★★★
You discover an investment costing $2,000 which has an expected total return of 13% pa, but a required return of only 9% pa. Of the 13% pa total expected return, the capital return is expected to be...

Answered: 1 week ago

Question

★★★★★
An item of depreciable machinery was acquired on 1 July 2009 for $120,000 by cash It is expected to have a useful life of 10 years and zero salvage value On 1 July 2012, it was decided to revalue the...

Answered: 1 week ago

Question

★★★★★
Last year, Owens, Inc., reported bad debt expense of $150,000. During the current year, Owens discovered that its bad debt expense for last year should have been $175,000. Owens retained earnings had...

Answered: 1 week ago

Question

★★★★★
At the end of the current year, Maple Company has a projected benefit obligation of $439,000 for its pension plan, and the fair value of its pension plan assets is $450,000. The company has a debit...

Answered: 1 week ago

Question

★★★★★
Lee Manufacturing Corporation was incorporated on January 3, 2009. The corporations financial statements for its first years operations were not examined by a CPA. You have been engaged to examine...

Answered: 1 week ago

Question

★★★★★
Super Markets Inc. is considering expanding into the Scottsdale, Arizona, area. You, as director of planning, must present an analysis of the proposed expansion to the operating committee of the...

Answered: 1 week ago

Question

★★★★★
The following data show the retail price for 12 randomly selected laptop computers along with their corresponding processor speeds in gigahertz. a. Develop a linear equation that can be used to...

Answered: 1 week ago

Question

★★★★★
The Cotton Mill is an upscale chain of womens clothing stores, located primarily in the southwest United States. Due to recent success, The Cotton Mills top management is planning to expand by...

Answered: 1 week ago

Previous Question Next Question