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. Assets Cash Accounts receivable Inventory Current assets Fixed assets Total assets $14 30 31 $75 48 $123 Balance Sheet (in $ millions) Liabilities and Stockholders' Equity Accounts payable Accrued wages Accrued taxes Current liabilities Notes payable Common stock Retained earnings Total liabilities and stockholders' equity ********|| Answer is complete but not entirely correct. New funds $ 19,584,200 x $123 Owen's has an aftertax profit margin of 7 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. (Do not round intermediate calculations. Enter your answer in dollars, not millions, (e.g., $1,234,567).)
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. Assets Cash Accounts receivable Inventory Current assets Fixed assets Total assets $14 30 31 $75 48 $123 Balance Sheet (in $ millions) Liabilities and Stockholders' Equity Accounts payable Accrued wages Accrued taxes Current liabilities Notes payable Common stock Retained earnings Total liabilities and stockholders' equity ********|| Answer is complete but not entirely correct. New funds $ 19,584,200 x $123 Owen's has an aftertax profit margin of 7 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. (Do not round intermediate calculations. Enter your answer in dollars, not millions, (e.g., $1,234,567).)
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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Transcribed Image Text: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.
Assets
Cash
Accounts receivable
Inventory
Current assets
Fixed assets
Total assets
$ 14
30
31
$75
48
$123
Balance Sheet
(in $ millions)
Liabilities and Stockholders' Equity
Accounts payable
Accrued wages
Accrued taxes
Current liabilities.
Notes payable
Common stock
Retained earnings
Total liabilities and stockholders' equity
$25
> Answer is complete but not entirely correct.
New funds $ 19,584,200 X
******||
$53
$123
Owen's has an aftertax profit margin of 7 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. (Do not round
intermediate calculations. Enter your answer in dollars, not millions, (e.g., $1,234,567).)
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