Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A local Company presented you with the following financial data: A & B firm reported that its sales for 2 0 2 2 was $

A local Company presented you with the following financial data:
A & B firm reported that its sales for 2022 was $125,000.00 with total costs of $110,000.00 and there were no taxes. The owner also reported $15,000.00 in cash, $20,000.00 in inventory and $30,000.00 of accounts payable. Also, there was $75,000.00 in net fixed assets with $15,000.00 in accounts receivables. It indicated that there was $40,000.00 in long term debt. The Company also paid 25 percent of the net income as cash dividend. 1.Compute the firms internal growth rate. 2.Compute the sustainable growth rate. 3.If you deposit $1.200.00 in bank that pays 15% annual rate, what will this money worth in five (5) years? 4.What is the present value of $45,000.00 that is due six (6) years from today if the discount rate is 12%?5.What is the annual interest rate you must earn if you wish to double $5,000.00 in seven (7) years?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

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

Advanced Principles Of Auditing

Authors: Hugo Romero

1st Edition

1632409372, 978-1632409379

More Books

Students also viewed these Accounting questions