eBookAFN equationBroussard Skateboard's sales are expected to increase by 20% from $7.2 million in 2019 to $8.64 million in 2020. Its assets totaled $3 million at the end of 2019.Broussard is already at full capacity, so its assets must grow at the same rate as projected sales. At the end of 2019, current liabilities were $1.4 million, consisting of $450,000 ofaccounts payable, $500,000 of notes payable, and $450,000 of accruals. The after-tax profit margin is forecasted to be 7%, and the forecasted payout ratio is 75%. Use the AFN equationto forecast Broussard's additional funds needed for the coming year. Enter your answer in dollars. For example, an answer of $1.2 million should be entered as $1,200,000. Do not roundintermediate calculations. Round your answer to the nearest dollar.Hide FeedbackIncorrectProblem Walk-ThroughCheck My Work

Sale in 2019 is $7,200,000Sales in 2020 is $8,640,000Total assets in 2019 is $3,000,000increase in…

Answered: Broussard Skateboard's sales are…

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 the end of 2022, the following information is available for Great Adventures. Additional interest for five months needs to be accrued on the $32,200, 6% loan obtained on August 1, 2021. Recall that annual interest is paid each July 31. Assume that $12,200 of the $32,200 loan discussed above is due next year. By the end of the year, $20,000 in gift cards have been redeemed. The company had sold gift cards of $27,200 during the year and recorded those as Deferred Revenue. Great Adventures is a defendant in litigation involving a biking accident during one of its adventure races. The company believes the likelihood of payment occurring is probable, and the estimated amount to be paid is $14,200. For sales of MU watches, Great Adventures offers a warranty against defect for one year. At the end of the year, the company estimates future warranty costs to be $6,200. No Date General Journal Debit Credit 1 Dec 31 Interest Expense 805 Interest Payable 805…
Office Furniture & Fixtures, which is estimated to cost $350,000, will be purchased in February. The manager has made arrangement with the suppliers to make a cash deposit of 40% upon signing of the agreement in February. The balance will be settled in five (5) equal monthly instalments beginning March of 2022.
On September 1, 2024, Venetian Airlines borrows $39.8 million, of which $7.6 million is due next year. Show how Venetian Airlines would report the $39.8 million debt on its December 31, 2024, balance sheet. (Enter your answers in dollars, not millions. For example, $5.5 million should be entered as 5,500,000.)
Suppose a company spends $100,000 on research and development in 2021. As a result of the products developed, additional revenue is generated over the next five years totaling $600,000. When is the cost of the research and development in 2021 recognized as an expense? Multiple Choice Evenly over the period 2022-2026. Full amount in 2026. Evenly over the period 2021-2025. Full amount in 2021.
The Purchases of inventories by GH Stores for 2023 were forecast at R3 240 000, of which 40% is expected to be on credit. The debtors collection period is estimated to be 73 days and the creditors payment period is forecasted at 36.5. how much is expected to be owed to the creditors at the end of 2023?
Proton Corporation manufactures MRI machines used in the medical field. In the end of 2019, they reported a net income of $4,000,000. The company currently has 1,600,000 shares of common stock that trade for $12 per share. The company continues to expand and anticipates that in the end of 2020 their net income will be $6.5 million. They also anticipate issuing an additional 300,000 shares, so that in the end of 2020 the company will have 1,900,000 shares of common stock. Assuming the company’s price to earnings ratio remains at its current level, what will be the company’s stock price one year from now? 2.The PE ratio is a very common method used by investors to get a quick calculation on the market’s perception of a company. Critically evaluate the formula used to calculate the PE ratio focusing on the limitations of this method of valuation.
Long-Term Financing Needed At year-end 2019, Wallace Landscaping's total assets were $2.20 million, and its accounts payable were $505,000. Sales, which in 2019 were $3.0 million, are expected to increase by 10% in 2020. 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 $415,000 in 2019, and retained earnings were $305,000. Wallace has arranged to sell $70,000 of new common stock in 2020 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 2020. (Because the debt is added at the end of the year, there will be no additional interest expense due to the new debt.) Its net profit margin on sales is 3%, and 50% of earnings will be paid out as dividends. a. What was Wallace's total long-term debt in 2019? Do not round intermediate calculations. Enter your answer in…
U.S. Metallurgical Inc. reported the following balances in its financial statements and disclosure notes at December 31, 2020. Plan assets $ 400,000 Projected benefit obligation 320,000 U.S.M.'s actuary determined that 2021 service cost is $60,000. Both the expected and actual rate of return on plan assets are 9%. The interest (discount) rate is 5%. U.S.M. contributed $120,000 to the pension fund at the end of 2021, and retirees were paid $44,000 from plan assets. (Enter your answers in thousands (i.e., 10,000 should be entered as 10).) Required: What is the pension expense at the end of 2021? What is the projected benefit obligation at the end of 2021? What is the plan assets balance at the end of 2021? What is the net pension asset or net pension liability at the end of 2021? Prepare journal entries to record the (a) pension expense, (b) funding of plan assets, and (c) retiree benefit payments.
Precision Castparts, a manufacturer of processed engine parts in the automotive and airline industries, borrows $40.4 million cash on October 1, 2024, to provide working capital for anticipated expansion. Precision signs a one-year, 9% promissory note to Midwest Bank under a prearranged short-term line of credit. Interest on the note is payable at maturity. Each company has a December 31 year-end. Required: 1. Prepare the journal entries on October 1, 2024, to record (a) the notes payable for Precision Castparts and (b) the notes receivable for Midwest Bank. 2. Record the adjusting entry on December 31, 2024, for (a) Precision Castparts and (b) Midwest Bank. 3. Prepare the journal entries on September 30, 2025, to record payment of (a) the notes payable for Precision Castparts and (b) the notes receivable for Midwest Bank. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare the journal entries on October 1, 2024, to record (a) the…
Salmania Co. began working on a project on August 2019, to construct a BD8,250,000 bridge that is expected to be completed in October 2020, at an estimated cost of BD6,000,000. At the end of 2019, the costs to date were BD2,400,000 and the estimated total costs to complete had not changed. The progress billings during 2019 were BD1,600,000 and the cash collected during 2019 was BD1,475,000. Salmania uses the percentage-of-completion method. What amount would be reported in Construction in Process at December 31, 2019?
Waterway Industries will receive $26500 today (January 1, 2020), and also on each January 1st for the next five years (2021 – 2025). What is the present value of the six $26500 receipts, assuming a 8% interest rate?
A construction company plans to open an account for a major future equipment purchase. The plan is to make uniform annual deposits for the next 20 years in the account which is expected to earn a nominal interest rate of 6% per year compounded monthly. If the target is to have $4,000,000 at the end of the 20 years, how much should each deposit be? OA. $348,800 OB. $108,800 OC. $353,600 OD. $106,800

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