Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

USE THE INFORMATION BELOW TO ANSWER QUESTION 30 Xiao Hui, L.t. Balance Sheet for the Year Ending December 31, 2022 (All figures in dollars) 30.

image text in transcribed
USE THE INFORMATION BELOW TO ANSWER QUESTION 30 Xiao Hui, L.t. Balance Sheet for the Year Ending December 31, 2022 (All figures in dollars) 30. Assuming the following, compute Outsilic Funis Needed (OFN) for Xiao Hoi. Lud. for 2023 - In 2022, Xiao Hui. Lid, had sales of $800,000. Sales in 2023 are forecasted to be $900,000. - Xiso Hui. Ldd. estimates that the net profit margin in 2023 will be 7.5 percent. - Xiao Hui. L.td. will pay out 90% of all act incone in 2023 to its shareholders. - Xiao Hui. Lad, believes that all current assets other than cash will grow as a percent of sales (cash will remain at 8,000 ), net fixed assets will grow at 75% of the growth rate in sales, land will increase by 54000 (to $35,000 ), and short-term bank foass, accounts payable and accrued expenses will grow as a percent of sales. - The current portion of LT debt, LT debt, common stock and additional paid in capital are financing account variables (1.e., in the initial "pass" they will remain constant). USE THE INFORMATION BELOW TO ANSWER QUESTION 30 Xiao Hui, L.t. Balance Sheet for the Year Ending December 31, 2022 (All figures in dollars) 30. Assuming the following, compute Outsilic Funis Needed (OFN) for Xiao Hoi. Lud. for 2023 - In 2022, Xiao Hui. Lid, had sales of $800,000. Sales in 2023 are forecasted to be $900,000. - Xiso Hui. Ldd. estimates that the net profit margin in 2023 will be 7.5 percent. - Xiao Hui. L.td. will pay out 90% of all act incone in 2023 to its shareholders. - Xiao Hui. Lad, believes that all current assets other than cash will grow as a percent of sales (cash will remain at 8,000 ), net fixed assets will grow at 75% of the growth rate in sales, land will increase by 54000 (to $35,000 ), and short-term bank foass, accounts payable and accrued expenses will grow as a percent of sales. - The current portion of LT debt, LT debt, common stock and additional paid in capital are financing account variables (1.e., in the initial "pass" they will remain constant)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions

Question

Factors Affecting Conflict

Answered: 1 week ago

Question

Describe the factors that lead to productive conflict

Answered: 1 week ago

Question

Understanding Conflict Conflict Triggers

Answered: 1 week ago