Farnsbeck Inc. is forecasting a 15% increase in sales next year. Assume the company is operating at 100%capacity. The company has 50,000 shares of common stock outstanding. The firm will pay out 60% of its NetIncome in dividends and move 40% into retained earningsBased on the Income statement and balance sheet below answer the following questions.ASSETS20202019ASSETS20202019CASH AND MARKETABLE SECURITIESACCOUNTS RECEIVABLEINVENTORIES29,00025,000116,000 100,000145,000 125,000290,000 250,000362,000 350,000CURRENT ASSETSGROSS PLANT AND EQUIPMENTLESS: ACCUMULATED DEPRECIATION130,000 100,000232,000 250,000NET FIXED ASSETSTOTAL ASSETS 522,000 500,000LIABILITIES AND EQUITY90,48034,80025,420CURRENT LAIBILITIES 150,700 142,000145,000 140,000TOTAL LIABILITIES 295,700 282,000150,000 150,00078,000ACCOUNTS PAYABLEACCRURALSNOTES PAYABLE30,00034,000LONG TERM DEBTCOMMON STOCK ($1.00 par)RETAINED EARNINGS76,30068,000TOTAL OWNER'S EQUITY 226,300 218,000TOTAL LIABILITIES AND EQUITY 522,000 500,000INCOME STATEMENT20202019NET REVENUES & SALES (100,000 UNITS)COST OF GOODS SOLDGROSS PROFITFIXED OPERATING EXPENSES (pre depreciation)EBITDA Earnings before Intrest, Taxes, Dep & AmoritDEPRECIATION EXPENSEOPERATING INCOME (EBIT)INTERESTINCOME BEFORE TAXES (EBT)INCOME TAXES (40%)NET INCOME812,000 700,000522,000 450,000290,000 250,000174,200 151,000115,800 | 99,00030,000 25,00085,80014,50074,00014,00071,30060,00028,52024,00042,78034,480Retained Earnings 8,30036,00028,5007,50050,000divNUMBER OF SHARES OUTSTANDING50.000Compute the new level of net income for the company. [Select]Compute the company's addition to retained earnings for the [ Select]year.Compute the new level of total assets required. ( Select]Calculate the new level of current liabilities (Select]Compute the company's new level of retained earnings on the balance sheet ISelect]Calculate the level of Additional Funds Needed (AFN) to support the increase in sales.(Select]

Income statement is among the three financial statement named as cash flow statement and balance.…

capacity. The company has 50,000 shares of common stock outstanding. The firm will pay out 60% of Income in dividends and move 40% into retained earnings Based on the Income statement and balance sheet below answer the following questions ASSETS 2020 21 ASSETS 2020 2019 CASH AND MARKETABLE SECURITIES 29,000 25,000 ACCOUNTS RECEIVABLE INVENTORIES 116,000 100,000 145,000 125,000 290,000 250,000 CURRENT ASSETS

capacity. The company has 50,000 shares of common stock outstanding. The firm will pay out 60% of Income in dividends and move 40% into retained earnings Based on the Income statement and balance sheet below answer the following questions ASSETS 2020 21 ASSETS 2020 2019 CASH AND MARKETABLE SECURITIES 29,000 25,000 ACCOUNTS RECEIVABLE INVENTORIES 116,000 100,000 145,000 125,000 290,000 250,000 CURRENT ASSETS

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter3: Evaluation Of Financial Performance

Section: Chapter Questions

Problem 2P

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The Jimenez Corporation’s forecasted 2020 financial statements follow, along with some industry average ratios. Calculate Jimenez’s 2020 forecasted ratios, compare them with the industry average data, and comment briefly on Jimenez’s projected strengths and weaknesses. Jimenez Corporation: Forecasted Balance Sheet as of December 31, 2020 Jimenez Corporation: Forecasted Income Statement for 2020 Jimenez Corporation: Per Share Data for 2020 Notes: aIndustry average ratios have been stable for the past 4 years. bBased on year-end balance sheet figures. cCalculation is based on a 365-day year.
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Consider the following information which relates to a given company: 2019 Value Item $6.09 Earnings Per Share Price Per Share (Common Stock) $41.34 $62.7 million Book Value (Common Stock Equity) 2.57 million Total Common Stock Outstanding $4.98 Dividend Per Share Analysts expect that the company could maintain a constant annual growth rate in dividends per share of 5.93% in the future, or possibly 7.51% for the next 2 years and 5.35% thereafter. In addition, it is expected that the risk of the firm, as measured by the risk premium on its stock, to increase immediately from 8.04% to 10.03%. Currently, the risk-free rate is 5.55%. Required: Assuming no growth in future dividends, and a required return of 16.21%, find the value per share of the firm's stock. $4 (ROUND YOUR ANSWER TO 2 DECIMAL PLACES. FOR EXAMPLE: 17.23)
Financial Accounting
General Accounting
For the next fiscal year, you forecast net income of $48,300 and ending assets of $503,500. Your firm's payout ratio is 10.8%. Your beginning stockholders' equity is $299,400, and your beginning total liabilities are $129,100. Your non-debt liabilities such as accounts payable are forecasted to increase by $10,100. Assume your beginning debt is $109,100. What amount of equity and what amount of debt would you need to issue to cover the net new financing in order to keep your debt-equity ratio constant? The amount of debt to issue will be $ (Round to the nearest dollar.)
For the next fiscal year, you forecast net income of $48,100 and ending assets of $504,000. Your firm's payout ratio is 9.6%. Your beginning stockholders' equity is $298,000 and your beginning total liabilities are $119,700. Your non-debt liabilities such as accounts payable are forecasted to increase by $9,700. Assume your beginning debt is $109,800. What amount of equity and what amount of debt would you need to issue to cover the net new financing in order to keep your debt- equity ratio constant? Please show work. The amount of equity to issue will be... The amount of debt to issue will be...
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Provide correct answer for this accounting question