Loading...

Messages

Proposals

Stuck in your homework and missing deadline? Get urgent help in $10/Page with 24 hours deadline

Get Urgent Writing Help In Your Essays, Assignments, Homeworks, Dissertation, Thesis Or Coursework & Achieve A+ Grades.

Privacy Guaranteed - 100% Plagiarism Free Writing - Free Turnitin Report - Professional And Experienced Writers - 24/7 Online Support

The booth company's sales are forecasted to double from $1000

22/11/2021 Client: muhammad11 Deadline: 2 Day

The Booth Company's Sales

1. Additional Funds Needed
The Booth Company's sales are forecasted to double from $1,000 in 2012 to $2,000 in 2013. Here is the December 31, 2012, balance sheet:
Cash $ 100 Accounts payable $ 50
Accounts receivable 200 Notes payable 150
Inventories 200 Accruals 50
Net fixed assets 500 Long-term debt 400
Common stock 100
Retained earnings 250
Total assets $1000 Total liabilities and equity $1000
Booth's fixed assets were used to only 50% of capacity during 2012, but its current assets were at their proper levels in relation to sales. Spontaneous liabilities and all assets except fixed assets must increase at the same rate as sales, and fixed assets would also have to increase at the same rate if the current excess capacity did not exist. Booth's after-tax profit margin is forecasted to be 7% and its payout ratio to be 70%. What is Booth's additional funds needed (AFN) for the coming year? Round your answer to the nearest dollar.$

2. AFN equation
Broussard Skateboard's sales are expected to increase by 15% from $8 million in 2013 to $9.2 million in 2014. Its assets totaled $5 million at the end of 2013. Broussard is already at full capacity, so its assets must grow at the same rate as projected sales. At the end of 2013, current liabilities were $1.4 million, consisting of $450,000 of accounts payable, $500,000 of notes payable, and $450,000 of accruals. The after-tax profit margin is forecasted to be 6%, and the forecasted payout ratio is 55%. What would be the additional funds needed? Do not round intermediate calculations. Round your answer to the nearest dollar.
$
Assume that the company's year-end 2013 assets had been $4 million. Is the company's "capital intensity" ratio the same or different?

I. The capital intensity ratio is measured as A0*/S0. Broussard's capital intensity ratio is lower than that of the firm with $4 million year-end 2013 assets; therefore, Broussard is more capital intensive - it would require a smaller increase in total assets to support the increase in sales.
II. The capital intensity ratio is measured as A0*/S0. Broussard's capital intensity ratio is higher than that of the firm with $4 million year-end 2013 assets; therefore, Broussard is less capital intensive - it would require a smaller increase in total assets to support the increase in sales.
III. The capital intensity ratio is measured as A0*/S0. Broussard's capital intensity ratio is higher than that of the firm with $4 million year-end 2013 assets; therefore, Broussard is more capital intensive - it would require a larger increase in total assets to support the increase in sales.
IV. The capital intensity ratio is measured as A0*/S0. Broussard's capital intensity ratio is lower than that of the firm with $4 million year-end 2013 assets; therefore, Broussard is more capital intensive - it would require a larger increase in total assets to support the increase in sales.

3.AFN Equation Broussard Skateboard's sales are expected to increase by 15% from $8 million in 2013 to $9.2 million in 2014. Its assets totaled $4 million at the end of 2013. Baxter is already at full capacity, so its assets must grow at the same rate as projected sales. At the end of 2013, current liabilities were $1.4 million, consisting of $450,000 of accounts payable, $500,000 of notes payable, and $450,000 of accruals. The after-tax profit margin is forecasted to be 4%. Assume that the company pays no dividends. Under these assumptions, what would be the additional funds needed for the coming year? Do not round intermediate calculations. Round your answer to the nearest dollar.
$
Why is this AFN different from the one when the company pays dividends?

I. Under this scenario the company would have a lower level of retained earnings which would reduce the amount of additional funds needed.
II. Under this scenario the company would have a lower level of retained earnings but this would have no effect on the amount of additional funds needed.
III. Under this scenario the company would have a higher level of retained earnings which would reduce the amount of additional funds needed.
IV. Under this scenario the company would have a higher level of retained earnings which would increase the amount of additional funds needed.
V. Under this scenario the company would have a higher level of retained earnings but this would have no effect on the amount of additional funds needed.
4.Sales Increase
Maggie's Muffins, Inc., generated $4,000,000 in sales during 2013, and its year-end total assets were $2,400,000. Also, at year-end 2013, current liabilities were $1,000,000, consisting of $300,000 of notes payable, $500,000 of accounts payable, and $200,000 of accruals. Looking ahead to 2014, the company estimates that its assets must increase at the same rate as sales, its spontaneous liabilities will increase at the same rate as sales, its profit margin will be 4%, and its payout ratio will be 70%. How large a sales increase can the company achieve without having to raise funds externally; that is, what is its self-supporting growth rate? Do not round intermediate steps. Round your answers to the nearest whole.
Sales can increase by $ , that is by %.
5.Long-Term Financing Needed
At year-end 2013, Wallace Landscaping’s total assets were $1.8 million and its accounts payable were $415,000. Sales, which in 2013 were $2.6 million, are expected to increase by 30% in 2014. Total assets and accounts payable are proportional to sales, and that relationship will be maintained. Wallace typically uses no current liabilities other than accounts payable. Common stock amounted to $470,000 in 2013, and retained earnings were $345,000. Wallace has arranged to sell $50,000 of new common stock in 2014 to meet some of its financing needs. The remainder of its financing needs will be met by issuing new long-term debt at the end of 2014. (Because the debt is added at the end of the year, there will be no additional interest expense due to the new debt.) Its profit margin on sales is 4%, and 35% of earnings will be paid out as dividends.
1. What was Wallace's total long-term debt in 2013? Round your answer to the nearest dollar.
$
What were Wallace's total liabilities in 2013? Round your answer to the nearest dollar.
$
2. How much new long-term debt financing will be needed in 2014? (Hint: AFN - New stock = New long-term debt.) Round your answer to the nearest dollar.
$
6.Additional Funds Needed
The Booth Company's sales are forecasted to double from $1,000 in 2012 to $2,000 in 2013. Here is the December 31, 2012, balance sheet:

Cash $ 100 Accounts payable $ 50
Accounts receivable 200 Notes payable 150
Inventories 200 Accruals 50
Net fixed assets 500 Long-term debt 400
Common stock 100
Retained earnings 250
Total assets $1000 Total liabilities and equity $1000

Booth's fixed assets were used to only 50% of capacity during 2012, but its current assets were at their proper levels in relation to sales. Spontaneous liabilities and all assets except fixed assets must increase at the same rate as sales, and fixed assets would also have to increase at the same rate if the current excess capacity did not exist. Booth's after-tax profit margin is forecasted to be 7% and its payout ratio to be 70%. What is Booth's additional funds needed (AFN) for the coming year? Round your answer to the nearest dollar.

Homework is Completed By:

Writer Writer Name Amount Client Comments & Rating
Instant Homework Helper

ONLINE

Instant Homework Helper

$36

She helped me in last minute in a very reasonable price. She is a lifesaver, I got A+ grade in my homework, I will surely hire her again for my next assignments, Thumbs Up!

Order & Get This Solution Within 3 Hours in $25/Page

Custom Original Solution And Get A+ Grades

  • 100% Plagiarism Free
  • Proper APA/MLA/Harvard Referencing
  • Delivery in 3 Hours After Placing Order
  • Free Turnitin Report
  • Unlimited Revisions
  • Privacy Guaranteed

Order & Get This Solution Within 6 Hours in $20/Page

Custom Original Solution And Get A+ Grades

  • 100% Plagiarism Free
  • Proper APA/MLA/Harvard Referencing
  • Delivery in 6 Hours After Placing Order
  • Free Turnitin Report
  • Unlimited Revisions
  • Privacy Guaranteed

Order & Get This Solution Within 12 Hours in $15/Page

Custom Original Solution And Get A+ Grades

  • 100% Plagiarism Free
  • Proper APA/MLA/Harvard Referencing
  • Delivery in 12 Hours After Placing Order
  • Free Turnitin Report
  • Unlimited Revisions
  • Privacy Guaranteed

6 writers have sent their proposals to do this homework:

Math Specialist
Top Academic Tutor
Coursework Assignment Help
Isabella K.
Writing Factory
Homework Tutor
Writer Writer Name Offer Chat
Math Specialist

ONLINE

Math Specialist

I am a professional and experienced writer and I have written research reports, proposals, essays, thesis and dissertations on a variety of topics.

$46 Chat With Writer
Top Academic Tutor

ONLINE

Top Academic Tutor

As an experienced writer, I have extensive experience in business writing, report writing, business profile writing, writing business reports and business plans for my clients.

$45 Chat With Writer
Coursework Assignment Help

ONLINE

Coursework Assignment Help

I have read your project details and I can provide you QUALITY WORK within your given timeline and budget.

$38 Chat With Writer
Isabella K.

ONLINE

Isabella K.

This project is my strength and I can fulfill your requirements properly within your given deadline. I always give plagiarism-free work to my clients at very competitive prices.

$48 Chat With Writer
Writing Factory

ONLINE

Writing Factory

I am an experienced researcher here with master education. After reading your posting, I feel, you need an expert research writer to complete your project.Thank You

$23 Chat With Writer
Homework Tutor

ONLINE

Homework Tutor

I find your project quite stimulating and related to my profession. I can surely contribute you with your project.

$47 Chat With Writer

Let our expert academic writers to help you in achieving a+ grades in your homework, assignment, quiz or exam.

Similar Homework Questions

Synthesis Paper assignment - Access grader project chapter 3 - What are two ways monica invested in her human capital - Heinrich matzinger - Where did Patrol come from - Monash computer science electives - Two part question - Ligation of an intraoral salivary duct cpt code - Oars acer pat test - Help needed - En1150 week 2 assignment answers - Siop model lesson plan format - The toshiba accounting scandal how corporate governance failed - Doctor role play script - Mother's inheritance abu khalid analysis - Catawba industrial company case study solution - Apollo shoes case assignment answers - How many psychiatric hospitals are there in ghana - Straighterline college algebra final exam - Cloud Computing - The following represents a process used to assemble a chair - Overt and covert curriculum - Deakin master of landscape architecture - Dulux texture full cover - Nucleophilic substitution reactions lab report - How to calculate euac in excel - Riverbend City: Human Services Policy Outcome - The second nun's tale pdf - Compare and contrast technical writing and literary writing - Iceman murder mystery worksheet answers - Where do the microtubules of the spindle originate - Example breakdown structure for coffee shop - Ball bearings inc faces costs of production as follows - How to calculate approximate real rate of interest - Radio shack continuity tester - Jk rowling's 2008 harvard commencement speech - +91-8306951337 love marriage specialist astrologer IN Amritsar - Unit VIII Journal - In the upward-sloping segment of the aggregate supply curve, - Discussion - Metals and non metals quiz - Why women still can t have it all summary - The enjoyment of theatre 9th edition ebook - Facilities manager job description - Mgt 3810 - Tarasoff case brief - Conveyor belt project part 3b answers - Trade support loans application form - Vce physical education units 1 and 2 - Lcd leveraged loan primer - Read Deceitful Spammer or Marketing Genius? and complete the questions at the end of the case study. - Market focus is a marketing research firm that organizes - How to control light intensity in an experiment - Words that end with onic - The conditional tense in italian - Ofad ust edu ph ustet results - 67m2 to sq ft - Joy luck club characters - The beach carrier case study entrepreneurship - Discussion - Rufus fry watsons go to birmingham - Deadly unna essay questions - Hunger games interactive story - Which is better controlled access or contention explain - Mkt 571 researching marketing questions - Roland barthes the language of fashion summary - French ocr reading past papers - Iec 61000 4 15 - virtualization and associated security vulnerabilities - 100 clubland x treme continuous mix 2 - Sinusoidal functions as mathematical models ferris wheel problem - As nzs 1100.501 2002 - Obgyn soap note - Lubricants inc produces a special kind - Capstone project milestone 2 design for change proposal guidelines - Communication - 8051 risc or cisc - What is the purpose of a windshield survey - Recommendation for coca cola strategies - Writing iep goals for written expression - 1018 - Lesion method of studying the brain - Telephone script for research recruitment - Problem Analysis - Plain language principles and document design - Godrej ammonia free hair colour - Analyzing sources on the indian removal act answer key - The lodge yorkshire clinic - Discussion post soc350 - Demand and supply of iphone - Factset mergerstat bvr control premium study - Week-10 - Brisbane city council bimap - Chaffey chino campus map - Discussion Board - Northwestern human services pa - Nursing Theory Dorothy Orem - Devil in the white city literary devices - The number of natural numbers from 1000 to 9999 - Elements of an ethical sampling plan in nursing