CCC currently has sales of $27,000,000 and projects sales of $36,450,000 for next year. The firm's current assets equal $7,000,000 while its fixed assets are $8,000,000. The best estimate is that current assets will rise directly with sales while fixed assets will rise by $200,000. The firm presently has $3,500,000 in accounts payable, $1,400,000 in long-term debt, and $10,100,000 in common equity. All current liabilities are expected to change directly with sales. CCC plans to pay $900,000 in dividends next year and has a 5.0% net profit margin. Assuming the increase in fixed assets will occur, what is the most sales could equal next year without using discretionary sources of funds? (Round your answer to the nearest dollar.) $30,139,535 $33,485,023 $37,116,837 $26,610,195 $28,396,867
CCC currently has sales of $27,000,000 and projects sales of $36,450,000 for next year. The firm's current assets equal $7,000,000 while its fixed assets are $8,000,000. The best estimate is that current assets will rise directly with sales while fixed assets will rise by $200,000. The firm presently has $3,500,000 in accounts payable, $1,400,000 in long-term debt, and $10,100,000 in common equity. All current liabilities are expected to change directly with sales. CCC plans to pay $900,000 in dividends next year and has a 5.0% net profit margin. Assuming the increase in fixed assets will occur, what is the most sales could equal next year without using discretionary sources of funds? (Round your answer to the nearest dollar.) $30,139,535 $33,485,023 $37,116,837 $26,610,195 $28,396,867
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
im.3
Transcribed Image Text:CCC currently has sales of $27,000,000 and projects sales of $36,450,000 for next
year. The firm's current assets equal $7,000,000 while its fixed assets are
$8,000,000. The best estimate is that current assets will rise directly with sales while
fixed assets will rise by $200,000. The firm presently has $3,500,000 in accounts
payable, $1,400,000 in long-term debt, and $10,100,000 in common equity. All
current liabilities are expected to change directly with sales. CCC plans to pay
$900,000 in dividends next year and has a 5.0% net profit margin. Assuming the
increase in fixed assets will occur, what is the most sales could equal next year
without using discretionary sources of funds? (Round your answer to the nearest
dollar.)
$30,139,535
$33,485,023
$37,116,837
$26,610,195
$28,396,867
AI-Generated Solution
AI-generated content may present inaccurate or offensive content that does not represent bartleby’s views.
Unlock instant AI solutions
Tap the button
to generate a solution
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education