Axis Chemical Co. reported sales of $720,000 at the end of last year, but this year, sales are expected to grow by 6%. Axis Chemical Co. expects to maintain its current profit margin of 24% and dividend payout ratio of 15%. The following information was taken from Axis Chemical Co.'s balance sheet: Total assets $500,000 Accounts payable $65,000 Notes payable $40,000 Accrued liabilities $70,000 Based on the AFN equation, the firm's AFN for the current a) -133,793 b) -147,172 c) -153,862 d) -167,241 year is

Axis Chemical Co. reported sales of $720,000 at the end of last year, but this year, sales are expected to grow by 6%. Axis Chemical Co. expects to maintain its current profit margin of 24% and dividend payout ratio of 15%. The following information was taken from Axis Chemical Co.'s balance sheet: Total assets $500,000 Accounts payable $65,000 Notes payable $40,000 Accrued liabilities $70,000 Based on the AFN equation, the firm's AFN for the current a) -133,793 b) -147,172 c) -153,862 d) -167,241 year is

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 51E: Juroe Company provided the following income statement for last year: Juroes balance sheet as of...

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Chasse Building Supply Inc. reported net cash provided by operating activities of $243,000, capital expenditures of $112,900, cash dividends of $35,800, and average maturities of long-term debt over the next 5 years of $122,300. What is Chasses free cash flow and cash flow adequacy ratio? a. $94,300 and 0.77, respectively c. $130,100 and 1.06, respectively b. $94,300 and 0.82, respectively d. $165,900 and 1.36, respectively
Green Moose Industries reported sales of $720,000 at the end of last year, but this year, sales are expected to grow by 6%. Green Moose expects to maintain its current profit margin of 23% and dividend payout ratio of 20%. The following information was taken from Green Moose's balance sheet: Total assets: $450,000 Accounts payable: $60,000 Notes payable: $30,000 Accrued liabilities: $65,000 Based on the AFN equation, the firm's AFN for the current year is A positively signed AFN value represents: A surplus of internally generated funds that can be invested in physical or financial assets or paid out as additional dividends. A shortage of internally generated funds that must be raised outside the company to finance the company's forecasted future growth. A point at which the funds generated within the firm equal the demands for funds to finance the firm's future expected sales requirements. out Because of its excess funds, Green Moose Industries is thinking about raising its dividend…
Cold Duck Manufacturing Inc. reported sales of $743,000 at the end of last year, but this year, sales are expected to grow by 10%. Cold Duck expects to maintain its current profit margin of 24% and dividend payout ratio of 25%. The following information was taken from Cold Duck’s balance sheet: Total assets: $475,000 Accounts payable: $65,000 Notes payable: $45,000 Accrued liabilities: $70,000 Based on the AFN equation, the firm’s AFN for the current year is_________. A positively signed AFN value represents: -a shortage of internally generated funds that must be raised outside the company to finance the company’s forecasted future growth. -a surplus of internally generated funds that can be invested in physical or financial assets or paid out as additional dividends. -a point at which the funds generated within the firm equal the demands for funds to finance the firm’s future expected sales requirements. Because of its excess…
Berman & Jaccor Corporation's current sales and partial balance sheet are shown below. This year Sales $ 1,000 Balance Sheet: Assets Cash $ 150 Short-term investments $ 110 Accounts receivable $ 250 Inventories $ 250 Total current assets $ 760 Net fixed assets $ 400 Total assets $ 1,160 Sales are expected to grow by 8% next year. Assuming no change in operations from this year to next year, what are the projected total operating assets? Do not round intermediate calculations. Round your answer to the nearest dollar.
Green Caterpillar Garden Supplies Inc. reported sales of $720,000 at the end of last year, but this year, sales are expected to grow by 9%. Green Caterpillar expects to maintain its current profit margin of 22% and dividend payout ratio of 15%. The following information was taken from Green Caterpillar’s balance sheet: Total assets: $400,000 Accounts payable: $80,000 Notes payable: $30,000 Accrued liabilities: $60,000 Based on the AFN equation, the firm’s AFN for the current year is . A positively signed AFN value represents: A shortage of internally generated funds that must be raised outside the company to finance the company’s forecasted future growth. A point at which the funds generated within the firm equal the demands for funds to finance the firm’s future expected sales requirements. A surplus of internally generated funds that can be invested in physical or financial assets or paid out as additional dividends. Because…
Green Caterpillar Garden Supplies Inc. reported sales of $890,000 at the end of last year, but this year, sales are expected to grow by 7%. Green Caterpillar expects to maintain its current profit margin of 24% and dividend payout ratio of 10%. The following information was taken from Green Caterpillar’s balance sheet: Total assets: $425,000 Accounts payable: $70,000 Notes payable: $35,000 Accrued liabilities: $60,000 Based on the AFN equation, the firm’s AFN for the current year is Because of its excess funds, Green Caterpillar Garden Supplies Inc. is thinking about raising its dividend payout ratio to satisfy shareholders. Green Caterpillar could pay out of its earnings to shareholders without needing to raise any external capital.(Hint: What can Green Caterpillar increase its dividend payout ratio to before the AFN becomes positive?)
For the year ended December 31, 2022, Settles Incorporated earned an ROI of 10.5%. Sales for the year were $9 million, and average asset turnover was 2.1. Average stockholders' equity was $2.8 million. Required: Calculate Settles Incorporated's margin and net income. Note: Round "Margin" answer to 1 decimal place. Enter the net income answer in dollars, i.e., $5 million should be entered as 5,000,000. Calculate Settles Incorporated's return on equity. Note: Round your answer to 1 decimal place.
For the year ended December 31, 2022, Settles Incorporated earned an ROI of 8.8 %. Sales for the year were $9 million, and average asset turnover was 2.2. Average stockholders' equity was $2.9 million. Required: a. Calculate Settles Incorporated's margin and net income. Note: Round "Margin" answer to 1 decimal place. Enter the net income answer in dollars, i.e., $5 million should be entered as 5,000,000. b. Calculate Settles Incorporated's return on equity. Note: Round your answer to 1 decimal place. a. Margin a. Net income % b. Return on equity %
Projected Operating Assets Berman & Jaccor Corporation's current sales and partial balance sheet are shown below. This year Sales $1,000 Balance Sheet: Assets Cash $ 200 Short-term investments $ 115 Accounts receivable $ 200 Inventories $ 250 Total current assets $ 765 Net fixed assets Total assets $ 550 $1,315 Sales are expected to grow by 12% next year. Assuming no change in operations from this year to next year, what are the projected total operating assets? Do not round intermediate calculations. Round your answer to the nearest dollar. $ 1,471
Projected Operating Assets Berman & Jaccor Corporation's current sales and partial balance sheet are shown below. This year's Sales $ 1,000 Balance Sheet: Assets Cash $ 150 Short-term investments $ 140 Accounts receivable $ 100 Inventories $ 150 Total current assets $ 540 Net fixed assets $ 400 Total assets $ 940 Sales are expected to grow by 8% next year. Assuming no change in operations from this year to next year, what are the projected total operating assets? Do not round intermediate calculations. Round your answer to the nearest dollar.
The balance sheet for Revolution Clothiers is shown below. Sales for the year were $3,200,000, with 75 percent of sales sold on credit. Assets Cash Accounts receivable Inventory Plant and equipment Total assets REVOLUTION CLOTHIERS Balance Sheet 20X1 a. Current ratio b. Quick ratio c. Debt-to-total-assets ratio d. Asset turnover e. Average collection period $ 25,000 351,000 251,000 423,000 $ 1,050,000 Accounts payable Accrued taxes Liabilities and Equity times times % times days Bonds payable (long-term) Common stock Paid-in capital Retained earnings Total liabilities and equity $ 247,000 97,000 136,000 Compute the following ratios: Note: Use a 360-day year. Do not round intermediate calculations. Round your answers to 2 decimal places. Input your debt-to- total assets answer as a percent rounded to 2 decimal places. 100,000 150,000 320,000 $ 1,050,000
Suppose that Gyp Sum Industries currently has the balance sheet shown below, and that sales for the year just ended were $9.9 million. The firm also has a profit margin of 30 percent and a retention ratio of 20 percent, and expects sales of $7.9 million next year. AssetsLiabilities and EquityCurrent assets$ 1,741,000Current liabilities$ 1,401,840Fixed assets4,100,000Long-term debt1,550,000 Equity2,889,160Total assets$ 5,841,000Total liabilities and equity$ 5,841,000 If all assets and current liabilities are expected to shrink with sales, what amount of additional funds will Gyp Sum need from external sources to fund the expected growth?