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Additional Funds Needed Homework 1. Jill's Wigs Inc. had the following balance sheet last year: Last Fact. 1st Pass Last Fact. 1st Pass Cash $ 800 Accounts receivable Inventory 450 Accounts payable $ Accrued wages 350 150 950 Notes payable 2,000 Net fixed assets 34,000 Mortgage 26,500 Common stock 3,200 Retained earnings 4,000 Total liabilities Total assets $36,200 and equity $36,200 Jill has just invented a non-slip wig for men which she expects will cause sales to double, increasing after-tax net income to $1,000. She was at 65% of capacity last year. (a) Will Jill need any outside capital if she pays no dividends? If so, how much?

Additional Funds Needed Homework 1. Jill's Wigs Inc. had the following balance sheet last year: Last Fact. 1st Pass Last Fact. 1st Pass Cash $ 800 Accounts receivable Inventory 450 Accounts payable $ Accrued wages 350 150 950 Notes payable 2,000 Net fixed assets 34,000 Mortgage 26,500 Common stock 3,200 Retained earnings 4,000 Total liabilities Total assets $36,200 and equity $36,200 Jill has just invented a non-slip wig for men which she expects will cause sales to double, increasing after-tax net income to $1,000. She was at 65% of capacity last year. (a) Will Jill need any outside capital if she pays no dividends? If so, how much?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Additional Funds Needed Homework 1. Jill's Wigs Inc. had the following balance sheet last year: Last Fact. 1st Pass Last Fact. 1st Pass Cash $ 800 Accounts receivable Inventory 450 Accounts payable $ Accrued wages 350 150 950 Notes payable 2,000 Net fixed assets 34,000 Mortgage 26,500 Common stock 3,200 Retained earnings 4,000 Total liabilities Total assets $36,200 and equity $36,200 Jill has just invented a non-slip wig for men which she expects will cause sales to double, increasing after-tax net income to $1,000. She was at 65% of capacity last year. (a) Will Jill need any outside capital if she pays no dividends? If so, how much?
Transcribed Image Text:Additional Funds Needed Homework 1. Jill's Wigs Inc. had the following balance sheet last year: Last Fact. 1st Pass Last Fact. 1st Pass Cash $ 800 Accounts receivable Inventory 450 Accounts payable $ Accrued wages 350 150 950 Notes payable 2,000 Net fixed assets 34,000 Mortgage 26,500 Common stock 3,200 Retained earnings 4,000 Total liabilities Total assets $36,200 and equity $36,200 Jill has just invented a non-slip wig for men which she expects will cause sales to double, increasing after-tax net income to $1,000. She was at 65% of capacity last year. (a) Will Jill need any outside capital if she pays no dividends? If so, how much?
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