18 00:37:07 The most recent financial statements for Alexander Company are shown here: Balance Sheet Income Statement Sales Costs Taxable income $19,800 Taxes (22%) 4,356 Net income $ 15,444 $ 55,000 35,200 Multiple Choice O Assets and costs are proportional to sales. The company maintains a constant 26 percent dividend payout ratio and a constant debt-equity ratio. $9,905.67 What is the maximum increase in sales that can be sustained assuming no new equity is issued? $5,142.88 $3,144.45 Current assets Fixed assets $10,105.67 Total $10,005.67 $ 86,130 47,520 $ 133,650 Long-term debt $59,400 Equity 74,250 $ Total 133,650

18 00:37:07 The most recent financial statements for Alexander Company are shown here: Balance Sheet Income Statement Sales Costs Taxable income $19,800 Taxes (22%) 4,356 Net income $ 15,444 $ 55,000 35,200 Multiple Choice O Assets and costs are proportional to sales. The company maintains a constant 26 percent dividend payout ratio and a constant debt-equity ratio. $9,905.67 What is the maximum increase in sales that can be sustained assuming no new equity is issued? $5,142.88 $3,144.45 Current assets Fixed assets $10,105.67 Total $10,005.67 $ 86,130 47,520 $ 133,650 Long-term debt $59,400 Equity 74,250 $ Total 133,650

Name: 188 00:37:07The most recent financial statements for Alexander Compan
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Description: 188 00:37:07The most recent financial statements for Alexander Company are shown here:Income StatementSales$ 55,00035,200CostsTaxable income $19,800Taxes (22%)4,356Net income $ 15,444Assets and costs are proportional to sales. The company maintains

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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The most recent financial statements for Mandy Company are shown here: Income Statement Balance Sheet $ 11,940 Debt 31,500 Equity Sales Costs Taxable income Taxes (21%) Net income $ 20,100 Current assets 13,800 Fixed assets Internal growth rate $ 6,300 1,323 $ 4,977 Total $ 43,440 % $ 16,420 27,020 Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 45 percent dividend payout ratio. What is the internal growth rate? (Do not round intermediate calculations and enter your answer as a percent rounded 2 decimal places, e.g., 32.16.) Total $ 43,440
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Income Statement Balance Sheet Sales $ 29,300 Assets $ 22,500 Debt $ 6,000 Costs 22,870 Equity 16,500 Net income $ 6,430 Total $ 22,500 Total $ 22,500 The company has predicted a sales increase of 6 percent. Assume the company pays out half of net income in the form of a cash dividend. Costs and assets vary with sales, but debt and equity do not. Prepare the pro forma statements. (Input all amounts as positive values. Do not round intermediate calculations and round your answers to the nearest whole dollar amount.) Pro forma income statement Pro forma balance sheet Sales Assets Debt Costs Equity Net income Total Total What is the external financing needed?
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Return Ratios and Leverage The following selected data are taken from the financial statements of Redwood Enterprises: Sales revenue $641,000 Cost of goods sold 356,000 Gross profit $285,000 Selling and administrative expense 100,000 Operating income $185,000 Interest expense 50,000 Income before tax $135,000 Income tax expense (40%) 54,000 Net income $81,000 Accounts payable $45,000 Accrued liabilities 70,000 Income taxes payable 10,000 Interest payable 25,000 Short-term loans payable 150,000 Total current liabilities $300,000 Long-term bonds payable $500,000 Preferred stock, 10%, $100 par $250,000 Common stock, no par 600,000 Retained earnings 350,000 Total stockholders' equity $1,200,000 Total liabilities and stockholders' equity $2,000,000 Required: 1. Compute the following ratios for Redwood Enterprises: Return on sales Asset turnover (Assume that total assets at the beginning of the year…
Data on three unrelated companies are given in the following table. E (Click the icon to view the table.) Fill in the missing information in the preceding table. (Enter the capital turnover to two decimal places X.XX.) Osborne, Inc. Sales $ 114.000 Operating income $ 39,900 Total assets $ 71,250 Sales margin % Capital turnover Return on investment (ROI) Target rate of return. 10 % Residual income
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