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20 ad uz pda a vew 120 000 CES de put Ay a 1202000's preportional sales, and that relationship will be maintained that How much new long-term debt financing will be needed in 20227 0 SRI DAANU PA s sensue not pu amount of $105,000. The firm's prom en should be entered as 25,000,000 Round your answer to the nearest 000000's sty

20 ad uz pda a vew 120 000 CES de put Ay a 1202000's preportional sales, and that relationship will be maintained that How much new long-term debt financing will be needed in 20227 0 SRI DAANU PA s sensue not pu amount of $105,000. The firm's prom en should be entered as 25,000,000 Round your answer to the nearest 000000's sty

Essentials Of Investments
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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At year-end 2021, total assets for Arrington Inc. were $1.4 million and accounts payable were $330,000, Sales, which in 2021 were $2.70 million, are expected to increase by 25% in 2022. Total assets and accounts payable are proportional to sales, and that relationship will be maintained, that is, they will grow at the same rate as sales Arrington typically uses no cument abilities other than accounts payable. Common stock amounted to $410,000 in 2021, and retained earnings were $335,000. Arrington plans to sell new common stock in the amount of $105,000. The firm's profit margin on sales is 5%; 35% of earnings will be retained. What were Arrington's total abisties in 2021? Write out your answer completely. For example, 25 million should be entered as 25,000,000. Round your answer to the nearest cent 1 How much new long-term debt financing will be needed in 20227 (Hint: APN New stock New long-term debt.) Write out your answer completely. For example, 25 million should be entered as 25,000,000. Do not round intermediate calculations. Round your answer to the nearest cent S
Transcribed Image Text:At year-end 2021, total assets for Arrington Inc. were $1.4 million and accounts payable were $330,000, Sales, which in 2021 were $2.70 million, are expected to increase by 25% in 2022. Total assets and accounts payable are proportional to sales, and that relationship will be maintained, that is, they will grow at the same rate as sales Arrington typically uses no cument abilities other than accounts payable. Common stock amounted to $410,000 in 2021, and retained earnings were $335,000. Arrington plans to sell new common stock in the amount of $105,000. The firm's profit margin on sales is 5%; 35% of earnings will be retained. What were Arrington's total abisties in 2021? Write out your answer completely. For example, 25 million should be entered as 25,000,000. Round your answer to the nearest cent 1 How much new long-term debt financing will be needed in 20227 (Hint: APN New stock New long-term debt.) Write out your answer completely. For example, 25 million should be entered as 25,000,000. Do not round intermediate calculations. Round your answer to the nearest cent S
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