PLEASE ANSWER ALL 4 MULTIPLE CHOICE QUESTIONS
Wagner Industrial Motors, which is currently operating at full capacity, has sales of $2,400, current assets of 5740, current liabilities of 5430, net fed assets of $1.500 and a 5 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 10 percent next year. If all assets, short-term babes and costs vary directly with Sales, how much external equity financing is needed for next year? $252.00 $12.00 $240.00 $178.00 558.00 s points A new machine costing $1,500,000 is considered three-year property and is being deprecated using the four MACRS rates provided below. The machine will produce $1.350.000 in annual revenues and 5675.000 in annual cash expenses. Assume a 30% tax rate. What is the operating cash flow in year 47 MACRS Rate - Year 1: 33,33% MACRS Rate - Year 2:44.45 MACRS RateYear 3: 14,81% MACRS Rate - Year 4: 7.41% 5394,695 $439.155 5505,845 $550,305 5641.655 Use the following information to answer this question. Windswept, Inc. Year 2 Income Statement ($ in millions) Net sales $ 9,600 Less: Cost of goods sold 7,550 Less: Depreciation 380 Earnings before interest and taxes $ 1,670 Less: Interest paid 95 Taxable income $ 1,575 Less: Taxes 551 Net income $ 1,024 Windswept, Inc. Year 1 and Year 2 Balance Sheets ($ in millions). Year 1 Year 2 Year 1 Cash $ 200 $ 230 Accounts payable $ 1,410 Accounts rec. 950 850 Long-term debt 1,040 Inventory 1,690 1,625 Common stock $ 3,200 Total $ 2,840 $ 2,705 Retained earnings 510 Net fixed assets 3,320 3,820 Total assets $6,160 $6,525 Total liab. & equity $6,160 What is the financial leverage ratio for Year 2? (use the year-end value, not an average. 2.59 Year 2 $ 1,542 1,273 $ 2,950 760 $6,525 1.29 3.25 2.21 1.76 A firm has sales of $3,950, total assets of $3,650, and a net profit margin of 6 percent. The firm has a total debt ratio of 42 percent. What is the return on equity? 5.64 percent 11.20 percent 6.49 percent 8.93 percent 6.00 percent