Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You wish to forecast the financial statements of the Go-Broke Mosquito Farming Company. You plan to invest $50,000 of your money into the company. You

image text in transcribed
image text in transcribed
You wish to forecast the financial statements of the Go-Broke Mosquito Farming Company. You plan to invest $50,000 of your money into the company. You will be the only stockholder. You have looked in Risk Management Association's Annual Statement Studies and found the following information about the mosquito farming industry. *** BE SURE TO READ THE QUESTION BELOW. YOU DO NOT NEED TO FILL IN THE FINANCIAL STATEMENTS, ** Liabilities Notes Payable 8.6% Current Maturity LT Debt 3.496 Accounts Payable 17.5% Income Taxes Payable 0.0% All Other Current 12.6% Total Current Liabilities 42.1% Long Term Debt 12.9% Deferred Taxes 0.0% All other Non-Current Liabilities 996 Common Stock & Retained Earn. 35.9% Total Liabilities and Equity 100% You have also gathered the following information from Risk Management Associates about the mosquito farming 0.75 Total Liabilities and Equity 100% You have also gathered the following information from Risk Management Associates about the mosquito farming industry Inventory to Total Assets Sales to Total Assets Inventory Turnover 2.0 Times Interest Earned 3.0 Using this information and the techniques we learned in class, what is your estimate of Total Assets for the Go Broke Mosquito Farming Company? Once you have computed the total assets, you do not need to complete any other computations. 5.0 A $17.950.00 B. $212,236.88 C. $250,000.00 D. 537,500.00 O E $139,275.77

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

Step: 3

blur-text-image

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

Codes Of Finance

Authors: Vincent Antonin Lépinay

1st Edition

0691151504, 978-0691151502

More Books

Students also viewed these Finance questions

Question

People are more likely to follow a rule they help set.

Answered: 1 week ago