Answered step by step
Verified Expert Solution
Question
1 Approved Answer
A firm had the following balance sheet last year: Cash $ 800 Accounts payable Accounts receivable 450 Accrued vages Inventory 950 Notes payable Net fixed
A firm had the following balance sheet last year: Cash $ 800 Accounts payable Accounts receivable 450 Accrued vages Inventory 950 Notes payable Net fixed assets 34,000 Mortgage Cormon stock Retained earnings Total liebilities Total assets $36.200 and equity $ 350 150 2,000 26,500 3,200 4,000 $36,200 Sales to triple from $10,000 to $30,000 increasing net income to $1,000. No additional fixed assets will be needed. The firm pays a 20% dividend. (1) Will any outside capital be needed? (2) If so, how much? Select one: O A. Yes: $9,700 OB. Yes: $2,600 O c. Yes: $2,900 OD. No, there will be a $2.400 surplus, E. Yes $3,200
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started