Golden Co., a firm that is not operating at full capacity, balance sheet as of December 31, 2021, is as follows: 600,000 Accounts Payable Accruals Current Assets 100,000 100,000 Long-term Liabilities Equity 200,000 Fixed Assets 200,000 400,000 800,000 800,000
Golden Co., a firm that is not operating at full capacity, balance sheet as of December 31, 2021, is as follows: 600,000 Accounts Payable Accruals Current Assets 100,000 100,000 Long-term Liabilities Equity 200,000 Fixed Assets 200,000 400,000 800,000 800,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
In 2021, the company reported sales of 400,000, net income of 80,000, and total dividends of 20,000. Sales are projected to increase by 20% next year. Both the profit margin and the dividend pay-out ratio will remain the same. How much external funding will be raised?
![Golden Co., a firm that is not operating at full capacity, balance sheet as of December 31, 2021, is as follows:
600,000
Accounts Payable
Accruals
Current Assets
100,000
100,000
Long-term Liabilities
Equity
200,000
Fixed Assets
200,000
400,000
800,000
800,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fcd98e6d3-0e62-4d65-bc08-1c5db1c9d123%2F5a8c6dae-e350-4d36-bbfe-0857703da2d0%2F12ue2de_processed.png&w=3840&q=75)
Transcribed Image Text:Golden Co., a firm that is not operating at full capacity, balance sheet as of December 31, 2021, is as follows:
600,000
Accounts Payable
Accruals
Current Assets
100,000
100,000
Long-term Liabilities
Equity
200,000
Fixed Assets
200,000
400,000
800,000
800,000
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