Maggie's Muffins, Inc., generated $2,000,000 in sales during 2016, and its year-end total assets were $1,500,000. Also, at year-end 2016, current liabilities were $1,000,000, consisting of $300,000 of notes payable, $500,000 of accounts payable, and $200,000 of accruals. Looking ahead to 2017, the company estimates that its assets must increase at the same rate as sales, its spontaneous liabilities will increase at the same rate as sales, its profit margin will be 5%, and its payout ratio will be 70%. How large a sales increase can the company achieve without having to raise funds externally; that is, what is its self-supporting growth rate? Do not round intermediate steps. Round your answers to the nearest whole. Sales can increase by $ 40000 that is by

Maggie's Muffins, Inc., generated $2,000,000 in sales during 2016, and its year-end total assets were $1,500,000. Also, at year-end 2016, current liabilities were $1,000,000, consisting of $300,000 of notes payable, $500,000 of accounts payable, and $200,000 of accruals. Looking ahead to 2017, the company estimates that its assets must increase at the same rate as sales, its spontaneous liabilities will increase at the same rate as sales, its profit margin will be 5%, and its payout ratio will be 70%. How large a sales increase can the company achieve without having to raise funds externally; that is, what is its self-supporting growth rate? Do not round intermediate steps. Round your answers to the nearest whole. Sales can increase by $ 40000 that is by

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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Gildan Activewear Inc. reported the following selected financial information (all in U.S. $ millions): sales of $2,909 in 2018, $2,751 in 2017, and $2,585 in 2016. The company also reported net income of $351 in 2018, $362 in 2017, and $347 in 2016. Assets at the end of 2018 were $3,005; at the end of 2017, $2,981; and at the end of 2016, $2,990. Calculate Gildan's (1) asset turnover, (2) profit margin, and (3) return on assets for 2018 and 2017. (Round answers to 1 decimal place, e.g. 5.2.) ($ in U.S. millions) 2018 2017 times times (1) Asset turnover % % (2) Profit margin % (3) Return on assets %
The Booth Company's sales are forecasted to double from $1,000 in 2016 to $2,000 in 2017. Here is the December 31, 2016, balance sheet: Cash Accounts payable Accounts receivable Notes payable Inventories Accruals Net fixed assets Long-term debt Common stock Retained earnings Total liabilities and equity $50 150 50 400 100 250 Total assets $1000 $1000 Booth's fixed assets were used to only 50% of capacity during 2016, but its current assets were at their proper levels in relation to sales. All assets except fixed assets must increase at the same rate as sales, and fixed assets would also have to increase at the same rate if the current excess capacity did not exist. Booth's after-tax profit margin is forecasted to be 5% and its payout ratio to be 50%. What is Booth's additional funds needed (AFN) for the coming year? Round your answer to the nearest dollar. $ $ 100 200 200 500 360
In its 2014 annual report, Campbell Soup Company reports beginning-of-the-year total assets of $8,113 million, end-of-the-year total assets of $8,323 million, total sales of $8,268 million, and net income of $807 million. (a) Compute Campbell’s asset turnover. (b) Compute Campbell’s profit margin on sales. (c) Compute Campbell’s return on assets using (1) asset turnover and profit margin and (2) net income. (Round to two decimal places.)
Paladin Furnishings generated $2 million in sales during 2019, and its year-end total assets were $1.4 million. Also, at year-end 2019, current liabilities were $500,000, consisting of $200,000 of notes payable, $200,000 of accounts payable, and $100,000 of accrued liabilities. Looking ahead to 2020, the company estimates that its assets must increase by $0.70 for every $1.00 increase in sales. Paladin's profit margin is 5%, and its retention ratio is 35%. How large of a sales increase can the company achieve without having to raise funds externally? Write out your answer completely. For example, 25 million should be entered as 25,000,000. Do not round intermediate calculations. Round your answer to the nearest cent.
Avon Products, Inc., located in New York City, is one of the world’s largest producers of beauty and related products. The company's consolidated balance sheets for the 2016 and 2015 fiscal years included the following ($ in thousands): 2016 2015 Current assets: Receivables, less allowances of $131,100 in2016 and $86,700 in 2015 $ 458,900 $ 440,000 A disclosure note accompanying the financial statements reported the following ($ in thousands): Year Ended 2016 2015 (In thousands) Calculation of account receivables, net: Receivables $ 590,000 $ 526,700 Less: allowance for doubtful accounts (122,900 ) (77,600 ) Less: reserve for product returns (8,200 ) (9,100 ) Trade accounts receivable, net: $ 458,900 $ 440,000 Assume that the company reported bad debt expense in 2016 of $191,000 and had products returned for credit totaling $187,000 (sales price). Net sales for 2016 were…
On its 2020 Balance Sheet, Liddle Inc. reported Currents Assets of $215,000, Net Fixed Assets of $1,300,000, Long-Term Debt of $780,000, and Total Equity of $600,000. On the 2021 Balance Sheet, Net Fixed Assets are $1,150,000 and Net Working Capital is $240,000. On the 2021 Income statement, the firm reported Sales of $2,550,000, Earnings Before Interest and Taxes of $1,435,000 and Depreciation of $225,000. In 2021, the firms Cash Flow from Assets was $1,209,250. What were the firm’s Taxes in 2021? Present the answer rounded to the nearest dollar
Target industries reported $11,500 of sales and $5,000 of operating costs (including depreciation). The company has $20,500 of total invested capital, the weighted average cost of that capital (the WACC) was 8%, and the federal-plus-state income tax rate was 40%. What was the firm's Economic Value Added (EVA), i.e., how much value did management add to stockholders' wealth during 2017?
In 2016, the Allen corporation had sales of $63 million, total assets of $44 million, and total liabilities of $15 million. The interest rate on the company’s debt is 5.7 percent, and it’s tax rate is 35 percent. The operating profit margin is 14 percent. A. Compute the firm’s 2016 net operating income and net income The firm’s 2016 net operating income is Round to two decimal places.
Chastain Corporation is trying to determine the effect of its inventory turnover ratio and days sales outstanding (DSO) on its cash conversion cycle. Chastain's 2016 sales (all on credit) were $285000; its cost of goods sold is 80% of sales; and it earned a net profit of 6%, or $17100. It turned over its inventory 6 times during the year, and its DSO was 35 days. The firm had fixed assets totaling $37000. Chastain's payables deferral period is 40 days. Assume 365 days in year for your calculations. A. Calculate Chastain's cash conversion cycle. Round your answer to two decimal places. Do not round intermediate calculations. B.Assuming Chastain holds negligible amounts of cash and marketable securities, calculate its total assets turnover and ROA. Round your answers to two decimal places. Do not round intermediate calculations. C.Suppose Chastain's managers believe that the inventory turnover can be raised to 8.9 times. What would Chastain's cash conversion cycle, total assets…
Harris Foods' 2021 income statement reported total revenues of $625,000 and total expenses of $485,000 (including $30,000 of depreciation). The 2021 comparative balance sheet reported the following: cash- beginning balance, $60,000 and ending balance, $85,000; accounts receivable- beginning balance, $50,000 and ending balance $35,000; inventory- beginning balance, $45,000 and ending balance, $55,000; Equipment- beginning balance, $225,000 and ending balance, $200,000; accounts payable- beginning balance, $65,000 and ending balance $60.000. In addition to this information, Harris Foods also reported a $5,000 gain on the sale of equipment. Therefore, based only on this information, 2021 net cash inflow from operating activities was:
during the 2019, rainbow umbrella corp. had sales of $920,000. cost of goods sold, administrative and selling expenses, and depreciation expense were $610, 000, $125, 000, and $155,000, respectively. in addition, the company had an interest expense of $57,000 and a tax rate of 21% . what is the company's net income for 2019? what is its operating cash flow? suppose the company paid out $53,000 in cash dividends. if spending on net fixed assets and net working capital was zero and if no new stock was issued during the year, what was the net new long-term debt?

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