Bohemian Manufacturing Company Balance Sheet For the Year Ended on December 31 Assets Lates Current Assets Current abilities Cash and equivalent $150,000 Accounts payable 250.000 Accounts receivable 400,000 Acored abilities 150,000 Inventores 350,000 Notes payable 100.000 You Current Assets 5900,000 Total Current abilities 5500,000 Net Fixed Assets Long Term Bonds 1,000,000 Net plant and equipment $2,100,000 Total Debt 51.500.000 (minus depreciation) Common Equity Common stock too,too Retained earnings 700,000 Total Common Buty 51.500.000 Total Assets $3,000,000 Total Liabilities and Equity $3,000,000 The firm is currently in the process of forecasting sales, asset reuirements, and required funding for the coming year. In the year that just ended Bohemian Manufacturing Company generated $450,000 net income on sales of $14,000,000. The firm expects sales to increase by 185 this coming year and also expects to maintain a long-run dividend payout ratio of 356 Suppose Bohemian Manufacturing Company's assets are fully sted. Use the additional funds needed (APN) equation to determine the increase total assets that is necessary to support Bohemian Manufacturing Company's expected sales. (Note: Do not round intermediate calculations.) Suppose Bohemian Manufacturing company's assets are the use the snoed equation to determine the increase in total assess that is necessary to support Demian Manufacturing Company's expected sees. (Note: Do not round intermediate calculations.) $540,000 5648,000 $513,000 5621,000 When a firm grows, some liabilities grow spontaneously along with scies. Spontaneous etes are a source of capital that the firm will generate internally, so they reduce the need for external capital. How much of the stars as we supplied by saranaus liabilities for Bohemian Manufacturing Company this year? {Note: Do not round intermediate calculations) $82,000 596,400 168.400 $72,000 Suppose Bohemian Manufacturing Company's assets are fully utilized. Use the additional funds needed (AFN) equation to determine the increase in total assets that is necessary to support Bohemian Manufacturing Company's expected sales. (Note: Do not round intermediate calculations.) $540,000 $648,000 $513,000 $621,000 When a firm grows, some liabilities grow spontaneously along with sales. Spontaneous liabilities are a source of capital that the firm will generate Internally, so they reduce the need for external capital. How much of the total increase in assets will be supplied by spontaneous liabilities for Bohemian Manufacturing Company this year? (Note: Do not round intermediate calculations.) $82,800 $86,400 $68,400 $72,000 In addition, Bohemian Manufacturing Company is expected to generate net income this year. The firm will pay out some of its earnings as dividends but will retain the rest for future asset investment. Again, the more a firm generates internally from its operations, the less it will have to raise externally from the capital markets. Assume that the firm's profit margin and dividend payout ratio are expected to remain constant. Given the preceding information, Bohemian Manufacturing Company is expected to generates to retained earnings. (Note: Do not round intermediate calculations.) from operations that will be added (Note: Do not round According to the AFN equation and projections for Bohemian Manufacturing Company, the firm's AFN is $ intermediate calculations.)
