Assume the company is operating at full capacity. The company pays out in dividends 60% of its net income andmoves 40% of its net income into retained earnings.ASSETS20202019CASH AND MARKETABLE SECURITIES29,00025,000116,000 100,000145,000 125,000290,000 250,000362,000 350,000130,000 100,000232,000 250,000TOTAL ASSETS 522,000 500,000ACCOUNTS RECEIVABLEINVENTORIESCURRENT ASSETSGROSS PLANT AND EQUIPMENTLESS: ACCUMULATED DEPRECIATIONNET FIXED ASSETSLIABILITIES AND EQUITY78,000ACCOUNTS PAYABLEACCRURALSNOTES PAYABLE90,48030,00034,80025,420CURRENT LAIBILITIES 150,700 142,000145,000 140,.000TOTAL LIABILITIES 295,700 282,000150,000 150,00076,30034,000LONG TERM DEBTCOMMON STOCK ($1.00 par)RETAINED EARNINGS68,000TOTAL OWNER'S EQUITY 226,300 218,000TOTAL LIABILITIES AND EQUITY 522,000 500,000INCOME STATEMENT20202019NET REVENUES & SALES (100,000 UNITS)COST OF GOODS SOLDGROSS PROFITFIXED OPERATING EXPENSES (pre depreciation)EBITDA Earnings before Intrest, Taxes, Dep & AmoritDEPRECIATION EXPENSEOPERATING INCOME (EBIT)INTERESTINCOME BEFORE TAXES (EBT)INCOME TAXES (40%)NET INCOME812,000 700,000522,000 450,000290,000 250,000174,200 151,000115,800 99,.00030,000-85,80014,50071,30025,00074,00014,00060,00024,00036,00028,5007,50028,52042,780div34,480Earnings8,300NUMBER OF SHARES OUTSTANDING50,00050,000If we expect sales to increase by 20% next year what should be the new level of net income?[ Select]Based on a 20% increase in sales what should be the projected level of retained earnings on the balance sheet?[ Select)Based on a 20% increase in sales what should be the projected level of Total Assets?(Select]Based on a 20% increase in sales compute the Additional Financing Needs for next year.[ Select]

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If we expect sales to increase by 20% next year what should be the new level of net income? ( Select) Based on a 20% increase in sales what should be the projected level of retained earnings on the balance sheet? I Select] Based on a 20% increase in sales what should be the projected level of Total Assets? | Select)

If we expect sales to increase by 20% next year what should be the new level of net income? ( Select) Based on a 20% increase in sales what should be the projected level of retained earnings on the balance sheet? I Select] Based on a 20% increase in sales what should be the projected level of Total Assets? | Select)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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