1. Sales for 2017 were $250,000 and the projected growth rate in sales for 2018 is 60%. The 2018 projected net profit margin is 3.5%. Orange plans to pay a dividend of $2.65 per share in 2018. Cash will grow at 40 percent of the growth rate in sales, accounts receivable will grow at 85 percent of the growth rate in sales, inventory will grow at 120 percent of the growth rate in sales, net fixed assets will grow as a percent of sales, accounts payable and accruals will grow as a percent of sales, and long-term debt will increase by 65 percent of the growth in net fixed assets. All other financing accounts will remain constant. Based on these assumptions, compute Outside Funds Needed (OFN) for 2018. Record your answer on iCollege as a dollar amount rounded to 2 decimal places, but do not include a dollar sign or any commas in your answer.
2. Sales for 2017 were $300,000 and the projected growth rate in sales for 2018 is 40%. The 2018 projected net profit margin is 3.75%. Orange always pays out 80 percent of net income as dividends every year (they play to do so again in 2018). Cash will grow at 75 percent of the growth rate in sales, accounts receivable will grow at 85 percent of the growth rate in sales, inventory will grow at 95 percent of the growth rate in sales, net fixed assets will grow by 50 percent of the growth rate in sales, ALL current liabilities will grow as a percent of sales and long-term debt will increase by 60 percent of the growth in net fixed assets. All other financing accounts will remain constant. Based on these assumptions, compute Outside Funds Needed (OFN) for 2018. Record your answer on iCollege as a dollar amount rounded to 2 decimal places, but do not include a dollar sign or any commas in your answer.
3. Sales for 2017 were $250,000. The 2018 projected net profit margin is 3.5%. Orange plans to pay a dividend of $2.65 per share in 2018. Cash will grow at 40 percent of the growth rate in sales, accounts receivable will grow at 85 percent of the growth rate in sales, inventory will grow at 120 percent of the growth rate in sales, net fixed assets will grow as a percent of sales, accounts payable and accruals will grow as a percent of sales, and long-term debt will increase by 65 percent of the growth in net fixed assets. All other financing accounts will remain constant. Based on these assumptions, compute Orange Company's Sustainable Growth Rate. Record your answer on iCollege as a percent rounded to 2 decimal places, but do not include a percent sign or any commas in your answer. For example, record 0.253894 = 25.3894% as 25.39.
4. Sales for 2017 were $300,000. The 2018 projected net profit margin is 3.75%. Orange always pays out 80 percent of net income as dividends every year (they play to do so again in 2018). Cash will grow at 75 percent of the growth rate in sales, accounts receivable will grow at 85 percent of the growth rate in sales, inventory will grow at 95 percent of the growth rate in sales, net fixed assets will grow by 50 percent of the growth rate in sales, ALL current liabilities will grow as a percent of sales and long-term debt will increase by 60 percent of the growth in net fixed assets. All other financing accounts will remain constant. Based on these assumptions, compute Orange Company's Sustainable Growth Rate. Record your answer on iCollege as a percent rounded to 2 decimal places, but do not include a percent sign or any commas in your answer. For example, record 0.253894 = 25.3894% as 25.39.