P 15 20 15 30 70 P150 Total liabilities and equity P150 P 10 Accounts payable Notes payable Cash Accounts receivable 25 Inventories Net fixed assets 40 Accrued wages and taxes 75 Long-term debt Common equity Total asset Sales during the past year were P100, and they are expected to rise by 60 percent to P160 during next year. Also, during last year fixed assets were being utilized to only 95 percent of capacity, so National could have supported P100 of sales with fixed assets that were only 95 percent of last year's actual fixed assets. Assume that National's profit margin will remain constant at 5 percent and that the company will continue to pay out 60 percent of its earnings as dividends.
P 15 20 15 30 70 P150 Total liabilities and equity P150 P 10 Accounts payable Notes payable Cash Accounts receivable 25 Inventories Net fixed assets 40 Accrued wages and taxes 75 Long-term debt Common equity Total asset Sales during the past year were P100, and they are expected to rise by 60 percent to P160 during next year. Also, during last year fixed assets were being utilized to only 95 percent of capacity, so National could have supported P100 of sales with fixed assets that were only 95 percent of last year's actual fixed assets. Assume that National's profit margin will remain constant at 5 percent and that the company will continue to pay out 60 percent of its earnings as dividends.
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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Question
What amount of nonspontaneous, additional funds (AFN) will be needed during the next year?
Lux Co. December 31 balance sheet is given below
Transcribed Image Text:P 10 Accounts payable
Notes payable
40 Accrued wages and taxes 15
75 Long-term debt
Common equity
P 15
20
Cash
Accounts receivable 25
Inventories
Net fixed assets
30
70
P150 Total liabilities and equity P150
Total asset
Sales during the past year were P100, and they are expected to rise by 60 percent to
P160 during next year. Also, during last year fixed assets were being utilized to only
95 percent of capacity, so National could have supported P100 of sales with fixed
assets that were only 95 percent of last year's actual fixed assets. Assume that
National's profit margin will remain constant at 5 percent and that the company will
continue to pay out 60 percent of its earnings as dividends.
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