(Financial forecasting-discretionary financing needs) J. T. Jarmon, Inc. has been in business for only 1 year, and the CFO expects that the relationship between firm sales and its operating expenses, current assets, net fixed assets, and current liabilities will remain at their current proportion of sales. Last year, Jarmon had $18,400,000 in sales and net income of $552,000. The firm anticipates that next year's sales will reach $21,160,000, with net income rising to $634,800. Given its present high rate of growth, the firm retains all its earnings to help defray the cost of new investments. The firm's balance sheet for 2018 is found in the popup window: total assets for 2019 and its discretionary financing needs (DFN). Using the information provided, make an estimate of Jarmon's financing requirements or What are Jarmon's financing requirements or total assets for 2019? (Round to the nearest dollar.) What are Jarmon's discretionary financing needs (DFN) for 2019? $ (Round to the nearest dollar.) Data table (Click on the following icon in order to copy its contents into a spreads seet.) J. T. Jarmon, Inc. Current assets Net fixed assets Total Accounts payable Long-term debt Total liabilities Common stock Paid-in capital Retained earnings Common equity Total BALANCE SHEET 12/31/2018 $2,760,000 7,360,000 $10,120,000 LIABILITIES AND OWNER'S EQUITY $2,208,000 2,000,000 $4,208,000 2,000,000 2,712,000 1,200,000 5,912,000 $10,120,000 % OF SALES 15% 40% 12% NA NA NA "Not applicable. This figure does not vary directly with sales and is assumed to remain constant for purposes of making next year's forcast of financing requirements. X
(Financial forecasting-discretionary financing needs) J. T. Jarmon, Inc. has been in business for only 1 year, and the CFO expects that the relationship between firm sales and its operating expenses, current assets, net fixed assets, and current liabilities will remain at their current proportion of sales. Last year, Jarmon had $18,400,000 in sales and net income of $552,000. The firm anticipates that next year's sales will reach $21,160,000, with net income rising to $634,800. Given its present high rate of growth, the firm retains all its earnings to help defray the cost of new investments. The firm's balance sheet for 2018 is found in the popup window: total assets for 2019 and its discretionary financing needs (DFN). Using the information provided, make an estimate of Jarmon's financing requirements or What are Jarmon's financing requirements or total assets for 2019? (Round to the nearest dollar.) What are Jarmon's discretionary financing needs (DFN) for 2019? $ (Round to the nearest dollar.) Data table (Click on the following icon in order to copy its contents into a spreads seet.) J. T. Jarmon, Inc. Current assets Net fixed assets Total Accounts payable Long-term debt Total liabilities Common stock Paid-in capital Retained earnings Common equity Total BALANCE SHEET 12/31/2018 $2,760,000 7,360,000 $10,120,000 LIABILITIES AND OWNER'S EQUITY $2,208,000 2,000,000 $4,208,000 2,000,000 2,712,000 1,200,000 5,912,000 $10,120,000 % OF SALES 15% 40% 12% NA NA NA "Not applicable. This figure does not vary directly with sales and is assumed to remain constant for purposes of making next year's forcast of financing requirements. X
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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Transcribed Image Text:(Financial forecasting-discretionary financing needs) J. T. Jarmon, Inc. has been in business for only 1 year, and the CFO expects that the relationship
between firm sales and its operating expenses, current assets, net fixed assets, and current liabilities will remain at their current proportion of sales.
Last year, Jarmon had $18,400,000 in sales and net income of $552,000. The firm anticipates that next year's sales will reach $21,160,000, with net income
rising to $634,800. Given its present high rate of growth, the firm retains all its earnings to help defray the cost of new investments.
The firm's balance sheet for 2018 is found in the popup window:
total assets for 2019 and its discretionary financing needs (DFN).
Using the information provided, make an estimate of Jarmon's financing requirements or
What are Jarmon's financing requirements or total assets for 2019?
(Round to the nearest dollar.)
What are Jarmon's discretionary financing needs (DFN) for 2019?
$
(Round to the nearest dollar.)
Data table
(Click on the following icon in order to copy its contents into a spreads seet.)
J. T. Jarmon, Inc.
Current assets
Net fixed assets
Total
Accounts payable
Long-term debt
Total liabilities
Common stock
Paid-in capital
Retained earnings
Common equity
Total
BALANCE SHEET
12/31/2018
$2,760,000
7,360,000
$10,120,000
LIABILITIES AND OWNER'S EQUITY
$2,208,000
2,000,000
$4,208,000
2,000,000
2,712,000
1,200,000
5,912,000
$10,120,000
% OF SALES
15%
40%
12%
NA
NA
NA
"Not applicable. This figure does not vary directly with sales and is assumed to remain constant for
purposes of making next year's forcast of financing requirements.
X
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