Question
Using the following balance sheet for Sherman, Incorporated below to answer the next 10 questions Sherman, Incorporated Balance Sheet (in dollars) for the Year Ending
Using the following balance sheet for Sherman, Incorporated below to answer the next 10 questions
Sherman, Incorporated
Balance Sheet (in dollars) for the Year Ending December 31, 2018
Cash
12,000
Notes payable
11,000
Accounts receivable
24,000
Accounts payable
16,000
Inventory
46,000
Accruals
3,000
Current assets
82,000
Current portion LD debt
7,000
Net fixed assets
156,000
Current liabilities
37,000
Total assets
238,000
LT Debt
66,000
Common stock ($2.00 par value)
20,000
Additional paid in capital
67,000
Retained earnings
48,000
Total liabilities & equity
238,000
21)Sales for Sherman, Inc. in 2018 were $700,000. The projected growth rate in sales for 2019 is 30 percent and the projected net profit margin for 2019 is 5 percent. If all assets and all spontaneous liabilities (i.e., accounts payable and accruals) grow as a percent of sales, and if Sherman plans to pay out 70 percent of all net income as dividends in 2019, what is Sherman's additional (or, outside) funds needed for 2019?
22) Sales for 2018 were $550,000. The 2019 projected net profit margin is 3.5% and Sherman projects that the growth rate in sales in 2019 will be 40 percent. Sherman plans to pay a total dividend of $3,000 in 2019. Assuming that all current assets and all current liabilities except for current portion of LT debt grow as a percent of sales (i.e., current portion of LT debt does not change), what is Sherman's additional (or, outside) funds needed for 2019?
23) Sales for Sherman, Inc. in 2018 were $850,000. The 2019 projected net profit margin is 4.8% and Sherman projects that the growth rate in sales in 2019 will be 20 percent. Sherman plans to pay out 72 percent of net income as dividends in 2019. Assuming that cash does not change from its 2018 level, accounts receivable and inventory grow as a percent of sales, net fixed assets grow at 60% of the growth rate in sales, and all current liabilities grow as a percent of sales, what is Sherman's additional (or, outside) funds needed for 2019?
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