Net sales Cost of goods sold Depreciation Earnings before interest and taxes Interest paid Taxable Income Taxes Net income: Dividends Cash Accounts rec Inventory Statement Total Net fixed assets Total assets 7600 6,715 210 675 21 654 228 426 192 Major Manuscripts, Inc. 2009 Balance Sheet 2009 2.250 820 2.300 5,370 3,260 8.630 2009 1,700 280 2.400 4.250 Accounts payable Long-term debt Common stock Retained earnings Total abilities & equity 8630 Major Manuscripts, Inc. is currently operating at maximum capacity. All costs, assets, and current liabilities vary directly with sales. The tax rate and the divi payout ratio will remain constant. How much additional debt is required if no new equity is raised and sales are projected to increase by 10 percent? HINTS calculating the growth in assets. Now we need to figure out how we will pay for the arowth. Start by subtracting off from that needed amount of new
Net sales Cost of goods sold Depreciation Earnings before interest and taxes Interest paid Taxable Income Taxes Net income: Dividends Cash Accounts rec Inventory Statement Total Net fixed assets Total assets 7600 6,715 210 675 21 654 228 426 192 Major Manuscripts, Inc. 2009 Balance Sheet 2009 2.250 820 2.300 5,370 3,260 8.630 2009 1,700 280 2.400 4.250 Accounts payable Long-term debt Common stock Retained earnings Total abilities & equity 8630 Major Manuscripts, Inc. is currently operating at maximum capacity. All costs, assets, and current liabilities vary directly with sales. The tax rate and the divi payout ratio will remain constant. How much additional debt is required if no new equity is raised and sales are projected to increase by 10 percent? HINTS calculating the growth in assets. Now we need to figure out how we will pay for the arowth. Start by subtracting off from that needed amount of new
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
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A Ratio refers to a figure calculated as a reference to the relationship of two or more numbers and can be expressed as a fraction, proportion, percentage, or the number of times. When the number is determined by taking two accounting numbers derived from the financial statements, it is termed as the accounting ratio.
Return on Equity
The Return on Equity (RoE) is a measure of the profitability of a business concerning the funds by its stockholders/shareholders. ROE is a metric used generally to determine how well the company utilizes its funds provided by the equity shareholders.
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Transcribed Image Text:Major Manuscripts, Inc. 2009 Income
Statement
Net sales
Cost of goods sold
Depreciation
Earnings before interest and
taxes
Interest paid
Taxable Income
Taxes
Net income:
Dividends
Cash
Accounts rec
Inventory
Total
Net fixed assets
Total assets
2.300
5,370
7,500
6,715
210
675
3.260
8.630
21
654
Major Manuscripts, Inc. 2009 Balance Sheet
2009
2,250
820
228
426
192
Accounts payable
Long-term debt
Common stock
Retained earnings
2009
1,700
280
2.400
4.250
Total abilities & equity
8630
Major Manuscripts, Inc. is currently operating at maximum capacity. All costs, assets, and current liabilities vary directly with sales. The tax rate and the dividend
payout ratio will remain constant. How much additional debt is required if no new equity is raised and sales are projected to increase by 10 percent? HINT: Start by
calculating the arowth in assets. Now we need to figure out how we will oav for the arowth. Start by subtracting off from that needed amount of new assets the
5 17 111
Check my work
Mat
Transcribed Image Text:435
0 715
O
08
252
3
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