Question
Hungry Kids 2012 Income Statement Net sales $ 4,800 Cost of goods sold 3,450 Depreciation 690 Earnings before interest and taxes $ 660 Interest paid
| Hungry Kids 2012 Income Statement | ||
| Net sales | $ | 4,800 |
| Cost of goods sold |
| 3,450 |
| Depreciation | 690 | |
| Earnings before interest and taxes | $ | 660 |
| Interest paid | 175 | |
| Taxable Income | $ | 485 |
| Taxes | 204 | |
| Net income | $ | 281 |
| Dividends | $ | 68 |
| Addition to retained earnings | $ | 213 |
| Hungry Kids 2012 Balance Sheet | ||||||
|
| 2012 |
|
| 2012 | ||
| Cash | $ | 75 |
| Accounts payable | $ | 1,525 |
| Accounts rec. |
| 480 |
| Long-term debt |
| 1,580 |
| Inventory | 970 |
| Common stock | $ | 2,100 | |
| Total | $ | 1,525 |
| Retained earnings | 3,120 | |
| Net fixed assets | 6,800 |
|
|
|
| |
| Total assets | $ | 8,325 |
| Total liabilities & equity | $ | 8,325 |
Hungry Kids is currently operating at full capacity. The profit margin and the dividend payout ratio are held constant. Net working capital and fixed assets vary directly with sales. Sales are projected to increase by 4 percent. What is the external financing need?
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Finance At 40 Financial Intelligence
Authors: MOIRA O'NEILL Moira O'Neill
1st Edition
1408101114, 978-1408101117
