Owen's Electronics has nine operating plants in seven southwestern states. Sales for last year were $100 million, and the balancesheet at year-end is similar in percentage of sales to that of previous years (and this will continue in the future). All assets (includingfixed assets) and current liabilities will vary directly with sales. The firm is working at full capacity.CashAccounts receivableInventoryCurrent assetsFixed assetsTotal assetsNew fundsAssetsE122TOLCIEESBalance Sheet (in $ millions)E$ 122728$ 6745NOwen's Electronics has an aftertax profit margin of percent and a dividend payout ratio of 40 percent.If sales grow by 30 percent next year, determine how many dollars of new funds are needed to finance the growth.Note: Do not round intermediate calculations. Enter your answer in dollars, not millions, (e.g., $1,234,567).$ 112Liabilities and Stockholders' EquityAccounts payableAccrued wagesAccrued taxesCurrent liabilitiesNotes payableCommon stockRetained earningsTotal liabilities and stockholders' equity$22911$42161935$ 112

Forecasted sales = Last year sales (1 +%increase in sales ).= $100 million (1+30%).= $130 million.

Answered: Owen's Electronics has nine operating…

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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