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Complete the following analysis. Do not hard code values in your calculations, and do not round intermediate calculations. Necessary increase in assets Spontaneous increase in liabilities Projected increase in retained earnings Additional Funds Needed

Complete the following analysis. Do not hard code values in your calculations, and do not round intermediate calculations. Necessary increase in assets Spontaneous increase in liabilities Projected increase in retained earnings Additional Funds Needed

Essentials Of Investments
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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Suppose that Gyp Sum Industries currently has the balance sheet shown below, and that sales for the year just ended were $10.2 million. The firm also has a profit margin of 30 percent, a retention ratio of 20 percent, and expects sales of $8.2 million next year. Current assets $2,124,000 Fixed assets 4,200,000 Assets Liabilities and Equity Current liabilities Long-term debt Equity Total assets $6,324,000 Total liabilities and equity $ 6,324,000 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? (Enter your answer in dollars not in millions. Negative amount should be indicated by a minus sign.) Sales last year Profit margin Retention ratio Sales next year Assets Current liabilities $ 1,707,480 1,600,000 3,016,520 $ 10,200,000 30% 20% 8,200,000 6,324,000 1,707,480
Transcribed Image Text:Suppose that Gyp Sum Industries currently has the balance sheet shown below, and that sales for the year just ended were $10.2 million. The firm also has a profit margin of 30 percent, a retention ratio of 20 percent, and expects sales of $8.2 million next year. Current assets $2,124,000 Fixed assets 4,200,000 Assets Liabilities and Equity Current liabilities Long-term debt Equity Total assets $6,324,000 Total liabilities and equity $ 6,324,000 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? (Enter your answer in dollars not in millions. Negative amount should be indicated by a minus sign.) Sales last year Profit margin Retention ratio Sales next year Assets Current liabilities $ 1,707,480 1,600,000 3,016,520 $ 10,200,000 30% 20% 8,200,000 6,324,000 1,707,480
Complete the following analysis. Do not hard code values in your calculations, and do not round intermediate calculations. Necessary increase in assets Spontaneous increase in liabilities Projected increase in retained earnings Additional Funds Needed
Transcribed Image Text:Complete the following analysis. Do not hard code values in your calculations, and do not round intermediate calculations. Necessary increase in assets Spontaneous increase in liabilities Projected increase in retained earnings Additional Funds Needed
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