Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Berman & Jaccor Corporation's current sales and partial balance sheet are shown below. Sales are expected to grow by 12 next year. Assuming no change

image text in transcribed
image text in transcribed
image text in transcribed
Berman \\& Jaccor Corporation's current sales and partial balance sheet are shown below. Sales are expected to grow by \12 next year. Assuming no change in operations from this year to next year, what are the projected total operating assets? Do not round intermediate calculations. Round your answer to the nearest dollar. Broussard Skateboard's sales are expected to increase by \25 from \\( \\$ 8.2 \\) million in 2019 to \\( \\$ 10.25 \\) million in 2020 . Its assets totaled \\( \\$ 3 \\) million at the end of 2019 . Broussard is aiready at full capacity, so its assets must grow at the same rate as projected sales. At the end of 2019 , current liabilities were \\( \\$ 1.4 \\) million, consisting of \\( \\$ 450,000 \\) of accounts payable, \\( \\$ 500,000 \\) of notes payable, and \\( \\$ 450,000 \\) of accruals. The after-tax profit margin is forecasted to be \4, and the forecasted payout ratio is \45. Use the AFN equation to forecast Broussard's additional funds needed for the coming year. Enter your answer in dollars. For example, an answer of \\( \\$ 1.2 \\) million should be entered as \\( \\$ 1,200,000 \\). Do not round intermediate calculations. Round your answer to the nearest dollar. Maggie's Muffins Bakery generated \\( \\$ 4 \\) million in sales during 2019 , and its year-end total assets were \\( \\$ 2.8 \\) million. Also, at year-end 2019, current liabilities were \\( \\$ 1 \\) million, consisting of \\( \\$ 300,000 \\) of notes payable, \\( \\$ 500,000 \\) of accounts payable, and \\( \\$ 200,000 \\) of accruals. Looking ahead to 2020 , the company estimates that its assets must increase at the same rate as sales, its spontaneous liabilities will increase at the same rate as sales, its profit margin will be \4, and its payout ratio will be \50. How large a sales increase can the company achieve without having to raise funds externally - that is, what is its self-supporting growth rate? Do not round intermediate calculations. Enter your answer for sales increase in dollars. For example, an answer of \\( \\$ 2 \\) million should be entered as \\( 2,000,000 \\). Round che monetary value to the nearest dollar and percentage value to one decimal place. Sales can increase by \\( \\$ \\) , that is by \

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

Students also viewed these Accounting questions