Problem 4-27 (Algo) Percent-of-sales method [LO4-3]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 assets.Fixed assetsTotal assetsAssetsNew fundsat I can't message you ahead of time because of1Balance Sheet (in $ millions)2$ 112829$ 6846OCT$ 114Liabilities and Stockholders' EquityAccounts payableAccrued wagesAccrued taxesOwen's Electronics has an aftertax profit margin of 10 percent and a dividend payout ratio of 50 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., $1,234,567).Current liabilitiesNotes payableCommon stockRetained earningsTotal liabilities and stockholders' equity< Prev 58 of 742Next >$ 231013ATTRACT.$ 46182030$ 114

Owen's Electronics has nine operating plants in seven southwestern states. Sales for last year were $100 million, and the balance sheet at year-end is similar in percentage of sales to that of previous years (and this will continue in the future). All assets (including fixed assets) and current liabilities will vary directly with sales. The firm is working at full capacity. Cash Accounts receivable Inventory Current assets Fixed assets Assets Total assets Balance Sheet (in $ millions) Liabilities and Stockholders' Equity $ 11 Accounts payable 28 Accrued wages 29 Accrued taxes $68 46 $ 114 Current liabilities Notes payable Common stock Retained earnings Total liabilities and stockholders' equity Owen's Electronics has an aftertax profit margin of 10 percent and a dividend payout ratio of 50 percent. $ 23 10 13. $ 46 18 20 30 $ 114

Owen's Electronics has nine operating plants in seven southwestern states. Sales for last year were $100 million, and the balance sheet at year-end is similar in percentage of sales to that of previous years (and this will continue in the future). All assets (including fixed assets) and current liabilities will vary directly with sales. The firm is working at full capacity. Cash Accounts receivable Inventory Current assets Fixed assets Assets Total assets Balance Sheet (in $ millions) Liabilities and Stockholders' Equity $ 11 Accounts payable 28 Accrued wages 29 Accrued taxes $68 46 $ 114 Current liabilities Notes payable Common stock Retained earnings Total liabilities and stockholders' equity Owen's Electronics has an aftertax profit margin of 10 percent and a dividend payout ratio of 50 percent. $ 23 10 13. $ 46 18 20 30 $ 114

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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Bottling's December 31st balance sheet is given below: Cash 10 Accounts payable $ 15Accounts receivable 25 Notes payable 20 Inventory 40 Accrued wages and taxes 15 Net fixed assets 75 Long-term debt 30 Common equity 70 Total liabilities Total assets $150 and equity $150 Sales during the past year were $100, and they are expected to rise by 50 percent to $150 during next year. Also, during last year fixed assets were being utilized to only 85 percent of capacity (excess capacity). Assume that profit margin will remain constant at 5 percent and that the company will continue to pay out 60 percent of its earnings as dividends. To the nearest whole dollar, what amount of nonspontaneous, additional funds will be…
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Berman & Jaccor Corporation's current sales and partial balance sheet are shown below. This year Sales $1,000 Balance Sheet: Assets Cash $150 Short-term investments $140 Accounts receivable $300 Inventories $300 Total current assets $890 Net fixed assets $600 Total assets $1,490 Sales are expected to grow by 12% next year. Assuming no change in operations from this year to next year, what are the projected total operating assets? Do not round intermediate calculations. Round your answer to the nearest dollar.
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