Carlsbad Corporation's sales are expected to increasefrom $5 million in 2021 to $6 million in 2022, or by20%. Its assets totaled $3 million at the end of 2021.Carlsbad is at full capacity, so its assets must grow inproportion to projected sales. At the end of 2021,current liabilities are $1 million, consisting of $250,000of accounts payable, $500,000 of notes payable, and $250,000 of accrued liabilities. Its profit margin isforecasted to be 7%, and the forecasted retention ratiois 45%. Use the AFN equation to forecast theadditional funds Carlsbad will need for the coming year.Write out your answer completely. For example, 5million should be entered as 5,000,000. Round youranswer to the nearest dollar. $ What additional fundswould be needed if the company's year - end 2021assets had been $4 million? Assume that all othernumbers are the same. Write out your answercompletely. For example, 5 million should be entered as5,000,000. Round your answer to the nearest dollar. $Is the company's "capital intensity" the same or differentcomparing to initial situation? The firm's capital intensityratio in the new situation is - Select that in the initialone.

AFN = Additional funds needed.AFN = Increase in assets - Increase in Spontaneous liabilites -…

Carlsbad Corporation's sales are expected to increase from $5 million in 2021 to $6 million in 2022, or by 20%. Its assets totaled $3 million at the end of 2021 Carlsbad is at full capacity, so its assets must grow in proportion to projected sales. At the end of 2021, current liabilities are $1 million, consisting of $250,000 of accounts payable, $500,000 of notes payable, and 250,000 of accrued liabilities. Its profit margin is forecasted to be 7%, and the forecasted retention rat is 45%. Use the AFN equation to forecast the additional funds Carlsbad will need for the coming yea Write out your answer completely. For example, 5 million should be entered as 5,000,000. Round your answer to the nearest dollar. $ What additional funds

Carlsbad Corporation's sales are expected to increase from $5 million in 2021 to $6 million in 2022, or by 20%. Its assets totaled $3 million at the end of 2021 Carlsbad is at full capacity, so its assets must grow in proportion to projected sales. At the end of 2021, current liabilities are $1 million, consisting of $250,000 of accounts payable, $500,000 of notes payable, and 250,000 of accrued liabilities. Its profit margin is forecasted to be 7%, and the forecasted retention rat is 45%. Use the AFN equation to forecast the additional funds Carlsbad will need for the coming yea Write out your answer completely. For example, 5 million should be entered as 5,000,000. Round your answer to the nearest dollar. $ What additional funds

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

On December 31, 2020, Unger Co., (which reports under ASPE), has $4,000,000 of short-term notes payable due on February 14, 2021. On February 2, 2021, Unger arranged a long-term loan which is based on borrowing against 70% of its inventory cost value which will vary between $3,000,000 in May and $4,440,000 in November. It intends to use proceeds to pay the short-term notes payable due on February 14, 2021 and to pay the balance of it in cash. The amount of the short-term notes payable that should be reported as current liabilities on the December 31, 2020 balance sheet that is issued on March 5, 2021 is a. $0. b. $1,600,000 c. $892,000. d. $1,900,000 e. $4,000,000.
On December 31, 2020, Conchita Martinez Company signed a $1,000,000 note to Sauk City Bank. The market interest rate at that time was 12%. The stated interest rate on the note was 10%, payable annually. The note matures in 5 years. Unfortunately, because of lower sales, Conchita Martinez’s financial situation worsened. On December 31, 2022, Sauk City Bank determined that it was probable that the company would pay back only $600,000 of the principal at maturity. However, it was considered likely that interest would continue to be paid, based on the $1,000,000 loan. Instructions a. Determine the amount of cash Conchita Martinez received from the loan on December 31, 2020. b. Prepare a note amortization schedule for Sauk City Bank up to December 31, 2022. c. Determine the loss on impairment that Sauk City Bank should recognize on December 31, 2022.
On January 1, 2021, Saltimbocca Corporation borrowed $192,772 from Morgan Stanley. Under the terms of the loan, Saltimbocca will pay $500,000 to Morgan Stanley in ten years (on December 31, 2030), which implies that the yield to maturity (or implicit interest rate) on the loan is 10.0%. What is Saltimbocca’s interest expense on the loan for the year ended December 31, 2023 (the third year of the loan)? (Hint: Round to the nearest dollar. Do not use any dollar signs, commas, or decimals in your answer).
You have been asked to analyze First Union Bank. You have only the following information on the bank at year-end 2021: Net income is $210, 000, total debt is $1.8 million, and the bank's debt ratio is 60 percent. What is First Union Bank's ROE for 2021? (Do not round intermediate calculations. Round your percentage answer to 2 decimal places. (e.g., 32.16))
For the year ending December 31, 2017, sales for Company Y were $78.51 billion. Beginning January 1, 2018 Company Y plans to invest 7.5% of their sales amount each year and they expect their sales to increase by 4% each year over the next three years. Company Y invests into an account earning an APR of 2.0% compounded continuously. Assume a continuous income stream. How much money will be in the investment account on December 31, 2020? Round your answer to three decimal places. 84.762 X billion dollars How much money did Company Y invest in the account between January 1, 2018 and December 31, 2020? Round your answer to three decimal places. billion dollars How much interest did Company Y earn on this investment between January 1, 2018 and December 31, 2020? Round your answer to three decimal places. If intermediate values are used, be sure to use the unrounded values to determine the answer. billion dollars Submit Answer
(a) Assume JPM has a Liquidity Coverage Ratio of 112%. Assume JPM's High Quality Liquid Assets total $750 billion, what is JPM's 30-day net cash outflow? What is JPM's 30-day net cash outflow? (b) At year - end, 2022, JPM total assets $3, 665,743, 000, 000 ($3.665 trillion). What fraction of total assets are risk - weighted?
paresh
On December 31, 2020, Novak Company has $6,975,000 of short-term debt in the form of notes payable to Gotham State Bank due in 2021. On December 28, 2020, Novak enters into a refinancing agreement with Gotham that will permit it to borrow up to 67% of the gross amount of its accounts receivable. Receivables are expected to range between a low of $5,983,000 in May to a high of $7,983,000 in October during the year 2021. The interest cost of the maturing short-term debt is 15%, and the new agreement calls for a fluctuating interest at 1% above the prime rate on notes due in 2025. Novak's December 31, 2020, balance sheet is issued on February 15, 2021. Prepare a partial balance sheet for Novak at December 31, 2020, showing how its $6,975,000 of short-term debt should be presented. (Enter account name only and do not provide descriptive information.) NOVAK COMPANY Partial Balance Sheet V $
On December 31, 2020, Gibson Company has $18,200,000 of short-term debt in the form of notes payable to Blue Lagoon State Bank due in 2021. On January 28, 2021, Gibson enters into a refinancing agreement with Blue Lagoon that will permit it to borrow up to 60% of the gross amount of its accounts receivable. Receivables are expected to range between a low of $15,600,000 in May to a high of $20,800,000 in October during the year 2021. The interest cost of the maturing short-term debt is 15%, and the new agreement calls for a fluctuating interest at 1% above the prime rate on notes due in 2025. Gibson intends to use the refinancing agreement to the fullest extent possible. Gibson’s December 31, 2020, balance sheet is issued on February 15, 2021. Prepare a partial balance sheet for Gibson at December 31, 2020, showing how its $18,200,000 of short-term debt should be presented, including note disclosure.
It is December 31. Last year, Galaxy Corporation had sales of $80,000,000, and it forecasts that next year's sales will be $86,400,000. Its fixed costs have been-and are expected to continue to be-$44,000,000, and its variable cost ratio is 10.00 %. Galaxy's capital structure consists of a $15 million bank loan, on which it pays an interest rate of 12%, and 5,000,000 shares of outstanding common equity. The company's profits are taxed at a marginal rate of 35%. The following are the two principal equations that can be used to calculate a firm's DFL value: DFL (at EBIT = $X) = Given this information, complete the following sentences: Percentage Change in EPS Percentage Change in EBIT Consider the following statement about DFL, and indicate whether or not it is correct. 0 0 DFL (at EBITSX) = • The company's percentage change in EBIT is . The percentage change in Galaxy's earnings per share (EPS) is • The degree of financial leverage (DFL) at $86,400,000 is. (Hint: Use the changes in EPS…
Appalachian Registers, Inc. (ARI) has current sales of $50 million. Sales are expected to grow to $75 million next year. ARI currently has accounts receivable of $11 million, inventories of $15 million, and net fixed assets of $17 million. These assets are expected to grow at the same rate as sales over the next year. Accounts payable are expected to increase from their current level of $15 million to a new level of $20 million next year. ARI wants to increase its cash balance at the end of next year by $3 million over its current cash balances, which average $4 million. Earnings after taxes next year are forecasted to be $10 million. Next year, ARI plans to pay dividends of $1 million, up from $500,000 this year. ARI’s marginal tax rate is 34 percent. How much external financing is required by ARI next year? Enter your answer in millions. For example, an answer of $1.2 million should be entered as 1.2, not 1,200,000. Round your answer to two decimal places. $ _____ million ?
On December 31, 2025, Sarasota Company has $7,070,000 of short-term debt in the form of notes payable to Gotham State Bank due in 2026. On December 28, 2025, Sarasota enters into a refinancing agreement with Gotham that will permit it to borrow up to 56% of the gross amount of its accounts receivable. Receivables are expected to range between a low of $6,080,000 in May to a high of $8,062.000 in October during the year 2026. The interest cost of the maturing short-term debt is 15%, and the new agreement calls for a fluctuating interest at 1% above the prime rate on notes due in 2030. Sarasota's December 31, 2025, balance sheet is issued on February 15, 2026. Prepare a partial balance sheet for Sarasota at December 31, 2025, showing how its $7,070,000 of short-term debt should be presented. (Enter account name only and do not provide descriptive information) SARASOTA COMPANY Partial Balance Sheet