Question
Here is my 2nd tutor question. 42.(5 points) The following is the balance sheet for 2016 for Marbell Inc. Marbell Inc. Balance Sheet 12/31/2016 AssetsLiabilities
Here is my 2nd tutor question.
42.(5 points) The following is the balance sheet for 2016 for Marbell Inc.
Marbell Inc.
Balance Sheet
12/31/2016
AssetsLiabilities & Shareholders' Equity
Cash$15,000Accounts Payable$90,000
Accounts Receivable90,000Accrued Expenses7,500
Inventory60,000Notes Payable30,000
Current Assets165,000Current Liabilities127,500
Capital Assets60,000Common Stock75,000
Retained Earnings22,500
Total Assets$225,000Total L & S.E.$225,000
Sales for 2016 were $300,000. Sales for 2017 have been projected to increase by 20%. Marbell Inc. is operating below capacity and needs no additional investment in capital assets. Marbell has an 8% return on sales and 70% is paid out as dividends.Use the RNF method to determine the amount of new funds required to finance this growth.
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