dropbox answers in order
1. would/would not
2. will/will not
3. should / should not
4-5. will need external/ will have excess
6-7. would/ would not
Problem 23-06 HOM, Inc. had sales of $9 milion and a net profit margin of 8 percent in 2030. Management expects sales to grow to $9.9 million and $10.8 million in 20X1 and 20x2. respectively. Management wants to know if additional funds will be necessary to finance this anticipated growth. Currently, the firm is not operating at full capacity and should be able to sustaina 15 percent increase in sales. However, further increases in sales will require $3.1 million in plant and equipment for every $5 million increase in sales. (Note that even if sales increase by less than $5 million, the total amount of $3.1 million investment in plant and equipment is still required.) The firm's balance sheet is as follows: HIM, Incorporated Balance Sheet as of 12/31/XO Assets Llabilities and Equity $ 2,790,000 Acer $ 2,010,000 1,710,000 Accounts payable 1,980,000 2,610,000 Notas payable 1,120,000 plant and w oment 2,700.000 Long term debe 2,700,000 Equity 1.400.000 59.810,000 S510.000 Management has followed a policy of distributing at least 70 percent of earnings as dividends Management believes that the percent of sales method of forecasting is surrent to answer the question. "Will outside funding be necessary to use this technique, management has assumed that accounts receivable, inventory, accruals, and accounts payable will vary with the level of sales. Cash will not change 3. Prepare projected balance sheets for 20X1 and 20x2 that incorporate any necessary outile financing. Any short-term funds that are required should be obtained through a loan from the bank, and any excess short-term funds should be appropriately invested. Any long term financing that is needed should be obtained through long-term debt. Round your answers to the nearest dollar Ch 23: End of Chapter Problems - Forecasting Management has followed a policy of distributing at least 70 percent of earnings as dividends. Management believes that the percent of sales method of forecasting is sufficient to answer the question, "Wil outside funding be necessary?" To use this technique, management has assumed that accounts receivable, inventory, accruals, and accounts payable will vary with the level of sales, Cash will not change a. Prepare projected balance sheets for 20X1 and 20x2 that incorporate any necessary outside financing. Any short-term funds that are required should be obtained through a loan from the bank, and any excess short-term funds should be appropriately invested. Any long-term financing that is needed should be obtained through long-term debt. Round your answers to the nearest dollar HEM, Incorporated Balance Sheet as of 17/31/X1 Assets Liabilities and Equity Cash Accruals Marketable securities Accounts payable Accounts receivable Notes payable Long-term debe plant and equipment Equity HBM, Incorporated Balance sheet as of 12/31/X2 Llabilities and Equity Marketable securities Accounts receivable Accounts payable Totes payable Long-term debt End-of-Chapter Problems - Forecasting HBM, Incorporated Balance Sheet as of 12/31/X2 Liabilities and Equity Assets Cash Accruals Marketable securities Accounts receivable Inventory Plant and equipment Accounts payable Notes payable Long-term debt Equity b. If the firm did not distribute 70 percent of its earnings, could it sustain the expansion without issuing additional long-term debt? Round your answer to the nearest dollar If the firm did not distribute 70 percent of its earnings, the maximum possible retained earnings would be s A change in the dividend policy Select cover the expansion in plant and equipment c. If the firm's creditors in part a require a current ratio of 2.6:1, would that affect the firm's financing in 20x1 and 20x2? If so, what additional actions could the firm take7 Round your answers to two decimal places According to the forecast in part a, the current ratios in 20X1 and 20x2 are Current ratio of 2.6.1. the firm e ..meet the current ratio requirement and land 11, respectively. If the firm's creditors require a take additional actions to low current ratio d. If the percent of sales forecasts are replaced with the foowing regression equations Accounts receivable = $100,000+ 0.15 Sales, entry = $270.000+ 0.10 Sales h 23: End-of-Chapter Problems - Forecasting take? Round your answers to two decimal places. According to the forecast in part a, the current ratios in 20%1 and 20x2 are current ratio of 2.6:1, the firmSelect meet the current ratio requirement and select 1 and :1, respectively. If the firm's creditors require a take additional actions to low current ratio. d. If the percent of sales forecasts are replaced with the following regression equations: Accounts receivable = $100,000+ 0.15 Sales, Inventory = $270,000+ 0.10 Sales, Accruals - $100,000+ 0.05 Sales, Accounts payable - $270,0000.08 Sales, what is the firm's need for outside funding (if any) in 20X1 and 20x27 Round your answers to the nearest dollar. Enter your answers as positive values. In 20x1 the firm Select funds of $ In 20x2 the firm select funds of . If the firm's creditors in part d required a current ratio of 2.6:1, would that affect the firm's financing in 20x1 and 20x2? If so, what additional actions could the firm take? Round your answers to the nearest dollar The forecast indicates If the firm's creditors in part d required a current ratio of 2.611, the maximum amount of current abilities in 20X1 is that the firmSelect meet the current ratio requirement The forecasticates If the firm's creditors in part d required a current ratio of 2.611, the maximum amount of current abilities in 2022 is that the firme .meet the current ratio requirement. th 23: End-of-Chapter Problems - Forecasting Problem 23-06 HEM, Inc. had sales of $9 million and a net profit margin of 8 percent in 20X0. Management expects sales to grow to $9.9 million and $10.8 million in 20X1 and 20x2, respectively. Management wants to know if additional funds will be necessary to finance this anticipated growth. Currently, the firm is not operating at full capacity and should be able to sustain a 15 percent increase in sales. However, further increases in sales will require $3.1 million in plant and equipment for every $5 million increase in sales. (Note that even if sales increase by less than $5 million, the total amount of $3.1 million investment in plant and equipment is still required.) The firm's balance sheet is as follows: HRM, Incorporated Balance Sheet as of 12/31/XO Assets Liabilities and Equity Cash $ 2.790,000 Accruals $ 2.610.000 Accounts receivable 1.710,000 Accounts payable 1,980,000 Inventory 2,610,000 Notes payable 1.120,000 Plant and equipment Long-term dett 2,700,000 Equity 1.400,000 $9.810.000 $ 9,810,000 Management has followed a policy of distributing at least 70 percent of earnings as dividends. Management believes that the percent of sales method of forecasting is sufficient to answer the question, "Wil outside funding be necessary?" To use this technique, management has assumed that accounts receivable, inventory, accruals, and accounts payable will vary with the level of sales. Cash will not change a. Prepare projected balance sheets for 20X1 and 20x2 that incorporate any necessary outside financing. Any short-term funds that are required should be obtained through a loan from the bank, and any excess short-term funds should be appropriately invested. Any long-term financing that is needed should be obtained through long-term debt. Round your answers to the nearest dollar Incarnerated balance sheets D L L oblems - Forecasting TOMT UTE Udik, diu dily uxlub DOLCHI T 5 TUO ve appropriate erm debt. Round your answers to the nearest dollar. HBM, Incorporated Balance Sheet as of 12/31/X1 Assets Liabilities and Equity Cash Accruals Marketable securities Accounts payable Accounts receivable Notes payable Inventory Long-term debt Plant and equipment Equity HBM, Incorporated Balance Sheet as of 12/31/X2 Assets Liabilities and Equity Cash Accruals Marketable securities Accounts payable Accounts receivable Notes payable Inventory Long-term debt Plant and equipment Equity did not distribute 70 percent of its earnings, could it sustain the expansion without issuing additional long-term debt? Round your answer to the near did not distribute 70 percent of its camins the maximum mossible retainedioamini would be se Achance in the decidendinalia End-of-Chapter Problems - Forecasting Plant and equipment Equity b. If the firm did not distribute 70 percent of its earnings, could it sustain the expansion without issuing additional long-term debt? Round your answer to the nearest dollar If the firm did not distribute 70 percent of its earings, the maximum possible retained earnings would be s A change in the dividend policy Select cover the expansion in plant and equipment. c. If the firm's creditors in part a require a current ratio of 2.6:1, would that affect the firm's financing in 20X1 and 20x2? If so, what additional actions could the firm take7 Round your answers to two decimal places. According to the forecast in part a, the current ratios in 20X1 and 20x2 are current ratio of 2.6:1, the firm select meet the current ratio requirement and Select d. If the percent of sales forecasts are replaced with the following regression equations: 1 and 11, respectively. If the firm's creditors require a take additional actions to low current ratio. Accounts receivable $100.000 - 0.15 Sales, Inventory = $270,000+ 0.10 Sales, Accruals = $100,000+ 0.05 Sales, Accounts payable - $270.000+ 0.0 Sales what is the firm's need for outside funding (any) in 20%1 and 20x2 Round your answers to the nearest dollar. Enter your answers as positive values In 20x1 the firm wo thonom Select solar tunds of s According to the forecast in part a, the current ratios in 20X1 and 20x2 are current ratio of 2.6:1, the firm Select meet the current ratio requirement and Select 1 and :1, respectively. If the firm's creditors require a take additional actions to low current ratio. d. If the percent of sales forecasts are replaced with the following regression equations: Accounts receivable $100,000+ 0.15 Sales, Inventory = $270,000+ 0.10 Sales, Accruals $100,000+ 0.05 Sales, Accounts payable - $270,000+ 0.08 Sales, what is the firm's need for outside funding (if any) in 20X1 and 20x27 Round your answers to the nearest dollar. Enter your answers as positive values. In 20x1 the firm Select funds of $ In 20x2 the firm Select funds of s e. If the firm's creditors in part d required a current ratio of 2.611, would that affect the firm's financing in 20X1 and 20x2? If so, what additional actions could the firm takeRound your answers to the nearest dollar If the firm's creditors in part d required a current ratio of 2.6:1, the maximum amount of current abilities in 20X1 is $ that the firm -Select- meet the current ratio requirement. The forecast indicates If the firm's creditors in part d required a current ratio of 2.6:1, the maximum amount of current abilities in 20X2 is $ that the firm Select meet the current ratio requirement. The forecast indicates
