Homework answers / question archive / Balance Sheet Cash $180000 A/R 160000 Inventory 110000 Fixed assets 300000 Less acc depr 200000 Net fixed assets 100000 total assets 550000   A/P 50000 Bonds P 100000 Common stock 100000 capital paid in excess of par 75000 Retained earnings 225000 total liabilities and stockholders equity 550000   Income Statement Sales 1000000 Less COGS (400000) Gross profit 600000 Less op expense 300000 less depriciation exp 100000 EBIT 200000 less interest expense 50000 EBT 150000 less taxes 60000 EAT $90,000   Assume that only current assets and current liabilities vary directly with sales

Balance Sheet Cash $180000 A/R 160000 Inventory 110000 Fixed assets 300000 Less acc depr 200000 Net fixed assets 100000 total assets 550000   A/P 50000 Bonds P 100000 Common stock 100000 capital paid in excess of par 75000 Retained earnings 225000 total liabilities and stockholders equity 550000   Income Statement Sales 1000000 Less COGS (400000) Gross profit 600000 Less op expense 300000 less depriciation exp 100000 EBIT 200000 less interest expense 50000 EBT 150000 less taxes 60000 EAT $90,000   Assume that only current assets and current liabilities vary directly with sales

Finance

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Balance Sheet

Cash $180000

A/R 160000

Inventory 110000

Fixed assets 300000

Less acc depr 200000

Net fixed assets 100000

total assets 550000

 

A/P 50000

Bonds P 100000

Common stock 100000

capital paid in excess of par 75000

Retained earnings 225000

total liabilities and stockholders equity 550000

 

Income Statement

Sales 1000000

Less COGS (400000)

Gross profit 600000

Less op expense 300000

less depriciation exp 100000

EBIT 200000

less interest expense 50000

EBT 150000

less taxes 60000

EAT $90,000

 

Assume that only current assets and current liabilities vary directly with sales. expected to increase sales next year by 300000. Assuming the profit margin is 9% and that the dividend payout ratio is 40%, how much new financing will they need?