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Could you help me solve the whole problem? Thanks!!! ROTTWEILER RIGGINS COMPANY Below in the Xhformation for the Rottweiler Riggings Company. Start with the assumption
Could you help me solve the whole problem? Thanks!!!
ROTTWEILER RIGGINS COMPANY Below in the Xhformation for the Rottweiler Riggings Company. Start with the assumption that the firm is at full capacity. Use the percentage of sales approach. The payout ratio is constant. Round dollars to the nearest penny and use two decimal places for percentages. Income Statement Sales Costs Other Expenses EBIT Interest Paid Taxable income $980,760 $792,960 $20,060 $167,740 $14,740 $153,000 Rottweiler Riggings Company 2018 Financial Statements Balance Sheet Assets Liabilities & Owners' Equity Current Assets Current Liabilities Cash $27,920 Account Payable $71,720 AR $42,630 Notes Payable $17,620 Inventory $95,910 Total $89,340 Total $166,460 Long-Term Debt $170,000 Fixed Assets Net Plant & Equip $455,980 Owners' Equity Common Stock $140,000 Retained Earnings $223,100 Taxes (21%) Net Income $32,130 $120,870 Total $363,100 Dividends Paid Additions to RE $39,250 $81,620 Total Assets $622.440 Total Liabilities & Equity $622,440 a. Analysts predict that sales for Rottweiler Riggings will grow by 20% in 2019. Again, assume the company is operating at full capacity b. First, assume that the firm plans to use debt as its plug variable if it needs any additional (or have a surplus) financing. Second, assume that it plans to use equity as its plug variable if it needs any external (or have a surplus) financing. Create balance sheets that reflect these two scenarios. C. What is Rottweiler Riggings EFN, if the company was operating at 80% capacity usage for net fixed assets? Assume that Rottweiler Riggings plans to sell any excess fixed assets. (1) First, assume that they plan to use debt as their plug variable if it has any external (or have a surplus) financing. (2) Second, assume it plans to use equity as its plug variable if it needs any external or have a surplus) financing. Create balance sheets that reflect these two scenarios. d. What is Rottweiler Riggings' EFN, if the company was operating at 80% capacity usage for net fixed assets? Assume that Rottweiler Riggings does not plan to sell any excess fixed assets. Assume that it plans to use debt as its plug variable if there is any external (or have a surplus) financing needed. e. What growth rate can Rottweiler Riggings maintain if it uses no external financing? f. What is Rottweiler Riggings' sustainable growth rate? g. In terms of the sustainable growth rate, what are the determinants of growth? ROTTWEILER RIGGINS COMPANY Below in the Xhformation for the Rottweiler Riggings Company. Start with the assumption that the firm is at full capacity. Use the percentage of sales approach. The payout ratio is constant. Round dollars to the nearest penny and use two decimal places for percentages. Income Statement Sales Costs Other Expenses EBIT Interest Paid Taxable income $980,760 $792,960 $20,060 $167,740 $14,740 $153,000 Rottweiler Riggings Company 2018 Financial Statements Balance Sheet Assets Liabilities & Owners' Equity Current Assets Current Liabilities Cash $27,920 Account Payable $71,720 AR $42,630 Notes Payable $17,620 Inventory $95,910 Total $89,340 Total $166,460 Long-Term Debt $170,000 Fixed Assets Net Plant & Equip $455,980 Owners' Equity Common Stock $140,000 Retained Earnings $223,100 Taxes (21%) Net Income $32,130 $120,870 Total $363,100 Dividends Paid Additions to RE $39,250 $81,620 Total Assets $622.440 Total Liabilities & Equity $622,440 a. Analysts predict that sales for Rottweiler Riggings will grow by 20% in 2019. Again, assume the company is operating at full capacity b. First, assume that the firm plans to use debt as its plug variable if it needs any additional (or have a surplus) financing. Second, assume that it plans to use equity as its plug variable if it needs any external (or have a surplus) financing. Create balance sheets that reflect these two scenarios. C. What is Rottweiler Riggings EFN, if the company was operating at 80% capacity usage for net fixed assets? Assume that Rottweiler Riggings plans to sell any excess fixed assets. (1) First, assume that they plan to use debt as their plug variable if it has any external (or have a surplus) financing. (2) Second, assume it plans to use equity as its plug variable if it needs any external or have a surplus) financing. Create balance sheets that reflect these two scenarios. d. What is Rottweiler Riggings' EFN, if the company was operating at 80% capacity usage for net fixed assets? Assume that Rottweiler Riggings does not plan to sell any excess fixed assets. Assume that it plans to use debt as its plug variable if there is any external (or have a surplus) financing needed. e. What growth rate can Rottweiler Riggings maintain if it uses no external financing? f. What is Rottweiler Riggings' sustainable growth rate? g. In terms of the sustainable growth rate, what are the determinants of growthStep by Step Solution
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