Question
Part A) Forte's Flowers and Turf has $294,000 of sales and $170,000 of total assets. They are operating at 98 percent of capacity. What is
Part A) Forte's Flowers and Turf has $294,000 of sales and $170,000 of total assets. They are operating at 98 percent of capacity. What is their capital intensity ratio at full capacity?
Part B) Swami Transport is an overland freight service that promises ship your package all . . . the . . . way. They are currently bumbling and stumbling to meet demand and are, thus, currently operating at full capacity.
They have sales of $29,000, current assets of $1,600, current liabilities of $1,200, net fixed assets of $27,500, and a 2.9 percent profit margin. The firm has no long-term debt and does not plan on acquiring any. The firm does not pay any dividends. Sales are expected to increase by 7.4 percent next year.
If all assets, short-term liabilities, and costs vary directly with sales, how much additional equity financing is required for next year?
Part C) A firm wishes to maintain an internal growth rate of 8.0 percent and a divident payout ratio of 25 percent. The current profit margin is 9 percent, and the firm uses no external financing sources. What must total asset turnover be? Round your answer to 2 decimal places.
Part D) If the Garnett Corp. has a 13 percent ROE and a 25 percent payout ratio, what is its sustainable growth rate?
Part E) Money Badger and Associates, P.C. has sales of $638,298, COGS and SG&A totaling $222,324, depreciation expense of $54,535, and taxes paid of $80,400. A partial listing of its balance sheet accounts is as follows:
| Beginning Balance | Ending Balance |
Current Assets | $131,700 | $119,600 |
Net Fixed Assets | $712,500 | $689,200 |
Current Liabilities | $108,900 | $122,100 |
Long-Term Debt | $796,000 | $830,500 |
What is the amount of Money Badger's cash flow from assets?
*please show work to all parts to the question. thank you*
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started