Format: 111,111 National Co. has the following balance sheet as of December 31, 2022. P 100,000 100,000 100,000 300,000 400,000 P1.000,000 Total liabilities & equity P1.000.000 Current assets P 600,000 Fixed assets Accounts payable 400,000 Accrued liabilities Notes payable Long-term debt Total common equity Total assets In 2022, the company reported sales of P5 million, net income of P100,000, and dividends of P50,000. The company anticipates its sales will increase 25 percent in
Format: 111,111 National Co. has the following balance sheet as of December 31, 2022. P 100,000 100,000 100,000 300,000 400,000 P1.000,000 Total liabilities & equity P1.000.000 Current assets P 600,000 Fixed assets Accounts payable 400,000 Accrued liabilities Notes payable Long-term debt Total common equity Total assets In 2022, the company reported sales of P5 million, net income of P100,000, and dividends of P50,000. The company anticipates its sales will increase 25 percent in
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Assume the company uses the AFN formula and all additional funds needed (AFN) will come
from issuing new long-term debt. Given its forecast, how much long-term debt will the
company have to issue in 2023? * O
Format: 111,111
National Co. has the following balance sheet as of December 31, 2022.
Current assets P 600,000 Accounts payable
400,000 Accrued liabilities
Notes payable
Long-term debt
Total common equity
P 100,000
100,000
100,000
300,000
400,000
P1.000.000 Total liabilities & equity P1.000,000
Fixed assets
Total assets
In 2022, the company reported sales of P5 million, net income of P100,000, and
dividends of P50,000. The company anticipates its sales will increase 25 percent in
2023 and its dividend payout will remain at 50 percent. Assume the company is at full
capacity, so its assets and spontaneous liabilities will increase proportionately with an
increase in sales.
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