Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Given the following Financial Information Answer the following question: 2017 2018 Cash 9,000 1,554,179 Accounts Receivable 6,000 6,060 Inventory 6,000 6,060 Prepaid Assets 9,000 9,090

Given the following Financial Information Answer the following question: 2017 2018 Cash 9,000 1,554,179 Accounts Receivable 6,000 6,060 Inventory 6,000 6,060 Prepaid Assets 9,000 9,090 Other Assets 1,000 1,010 Total Current Assets 31,000 1,576,399 Net PPE 20,000 2,000 Intangibles 8,000 8,000 Total Assets 59,000 1,586,399 Accounts Payable 8,000 8,080 Salary Payable 7,000 7,070 Notes Payable 10,000 10,000 Total Current Liabilities 25,000 25,150 Long-Term Debt 80,000 80,000 Total Liabilities 105,000 105,150 Common Stock 50,000 50,000 Retained Earnings -96,000 1,431,249 total equity 46,000 1,481,249 2018 Sales 2,528,000 COGS 404,480 Gross Profit 2,123,520 SG&A 18,000 Other Operating Expenses 20,000 Depreciation 2,000 Interest 4,358 Taxes 239,104 Net Income 1,840,059 dividends 312,810 Compute the Firms Sustainable Growth Rate (Use this formula g=ROE\times(1-Payout~Ratio) ) a. 33.80% b. 141.65% c. 108.85% d. 103.11%

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

Production And Operations Analysis

Authors: Steven Nahmias, Tava Lennon Olsen

7th Edition

1478623063, 9781478623069

More Books

Students also viewed these Finance questions