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Blue Bk Manufacturing has the following end-of-year balance sheet Blue Elk Manufacturing Balance Sheet For the Year Ended on December 31 Assets Lablities Current Assets:
Blue Bk Manufacturing has the following end-of-year balance sheet Blue Elk Manufacturing Balance Sheet For the Year Ended on December 31 Assets Lablities Current Assets: Current Liabilties Cash and equivalents Accounts receivable Inventories $150,000 Accounts payable 400,000 Accrued liabilities $250,000 150,000 100,000 $500,000 1,000,000 $1,500,000 50,000 Notes payable Total Current Assets $900,000 Total Current Liabilities Net Fixed Assets: Long-Term Bonds Total Debt Net plant and equipment (cost minus depreciation) $2,100,000 Common Equity Common stock 800,000 700,000 $1,500,000 $3,000,000 Retained earnings Total Common Equity Total Liabilties and Equity Total Assets $3,000,000 The firm is currently in the process of forecasting sales, asset requirements, and required funding for the coming year. In the year that just ended, Blue Ek Manufacturing generated $350,000 net income on sales of $14,500,000 The firm expects sales to increase by 17% this coming year and also expects to maintain its long-run dividend payout ratio of 45%. Suppose Blue Elk Manufacturing's assets are fully utlized. Use the additional funds needed (AFN) equation to determine the increase in total assets that is necessary to support Blue Elk Manufacturing's expected sales. O $510,000 O $459,000 O $612,000 O $433,500 When a firm grows, some liabities grow spantaneously along with sales. Spontaneous liablities are a source of
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