Problem 29-24 Long-term financial plansAbbreviated financial statements for Archimedes Levers are shown in the table below. Assume sales and expenses increaseby 12% in 2018 and all assets and liabilities increase correspondingly. Also assume no new equity is issued and none isrepurchased.Income StatementSales$ 6,600Costs, including interest4,800Net income$ 1,800Balance Sheet, Year-End2018201720182017$ 5,800$ 5,300$ 2,5003,300$ 2,3332,967Net assetsDebtEquityTotal$ 5,800$ 5,300Total$ 5,800$ 5,300a. What is the value of the addition to retained earnings for 2018?Addition to retained earnings repurchased.Income Statement$ 6,6004,800SalesCosts, including interestNet income$ 1,800Balance Sheet, Year-End2018201720182017$ 5,800$ 2,5003,300$ 2,333Net assets$ 5,300DebtEquity2,967Total$ 5,800$ 5,300Total$ 5,800$ 5,300a. What is the value of the addition to retained earnings for 2018?Addition to retained earningsb. What is the residual dividend for 2018?Residual dividend

a. Addition in the retained earning can be calculated by subtracting the current year’s equity from…

Answered: Problem 29-24 Long-term financial plans…

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 66 Using Financial Statements for 2018-2019. Net asset value per share of preferred stock for 2019 is $685.71. TRUE OR FALSE?
Dec 31' Dec 31' Period Ending 2019 2020 Current Assets Cash And Cash Equivalents 3,803,377.00 3,310'509.00 Short Term Investments 10.000 100,000 Net Receivables 2,595,746.00 2,812,421.00 Inventory 551'244.00 646'295.00 Prepayments 252'852.00 207'662.00 Total Current Assets 7,213'289.00 7,318'652.00 Current Liabilities Accounts Payable 1'038'953.00 999'675.00 Short/Current Long Term Debt 1'563'378.00 1'519'483.00 Accruala 1'664'679.00 1'546'993.00 Total Current Liabilities 4'267'010.00 4'066'151.00 What is the Current Ratio for 2020 Select one: O a. 1.3:1 O b. 2.5:1 O c. 1.5:1 O d. 1.8:1
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Question 18 Given: 2019 Sales $216,259 2020 Sales $290,149 2019 Operating Income = $102,258 2020 Operating Income = $174,701 2019 Net Income = $55,852 2020 Net Income = $83,735 Calculate DOL: (Enter your answer with 2 decimal places)
Ch 17-End-of-Chapter Problems LPK- Financial Planning and Forecasting Carlsbad Corporation's sales are expected to increase from $5 million in 2021 to $6 million in 2022, or by 20%. Its assets totaled $2 million at the end of 2021. Carlsbad is at full capacity, so its assets must grow in proportion to projected sales. At the end of 2021, current liabilities are $1 million, consisting of $250,000 of accounts payable, $500,000 of notes payable, and $250,000 of accrued liabilities. Its profit margin is forecasted to be 4%, and the forecasted retention ratio is 35%. Use the AFN equation to forecast the additional funds Carlsbad will need for the coming year. Write out your answer completely. For example, 5 million should be entered as 5,000,000. Round your answer to the nearest dollar. $ eBook What additional funds would be needed if the company's year-end 2021 assets had been $3 million? Assume that all other numbers are the same. Write out your answer completely. For example, 5 million…
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TABLE 7.7 Financlal projoctions for Prairie Home Stores, 2016-2021 (figures in millions) 2016 2017 2018 2019 2020 2021 Rapid-Growth Scenario Book valuo, start of year S80 $ 92 $105.8 $121.7 $139.9 $146.9 Earnings 12 13.8 15.9 18.3 21.0 22.0 14 14.7 Dividonds 12 13.8 15.9 18.3 7.0 7.4 Rotainod earnings Book value, and of yoar 92 105.8 121.7 139.9 146.9 154.3 Constant-Growth Scenario Book value, start of year $80 $84 $88.2 $92.6 $ 97.2 $102.1 Earnings 12 12.6 13.2 13.9 14.6 15.3 Dividonds 8. 8.4 8.8 9.3 9.7 10.2 Rotainod earnings 4 4.2 4.4 4.6 4.9 5.1 Book value, end of year 84 88.2 92.6 97.2 102.1 107.2 Notos: 1 Both panels assumo oarnings oqual to 15% of start-of-yoar book valuo. This proftability rato is constant. 2 Tho top panol assumos afl carnings aro reinvosted from 2016 to 2019. In 2020 and lator yoars, two-thirds of oarnings aro paid out as dividends and one-third roinvosted. 3. Tho botlom panel assumos two-thirds of oarnings aro paid out as dividends in all yoars. 4. Columna…
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What amount of nonspontaneous, additional funds (AFN) will be needed during the next year? Lux Co. December 31 balance sheet is given below
2. Problem 17.02 (AFN Equation) eBook Carlsbad Corporation's sales are expected to increase from $5 million in 2021 to $6 million in 2022, or by 20%. Its assets totaled $3 million at the end of 2021. Carlsbad is at full capacity, so its assets must grow in proportion to projected sales. At the end of 2021, current liabilities are $1 Allion, consisting of $250,000 of accounts payable, $500,000 of notes payable, and $250,000 of accrued liabilities. Its profit margin is forecasted to be 6%, and the forecasted retention ratio is 35%. Use the AFN equation forecast the additional funds Carlsbad will need for the coming year. Write out your answer completely. For example, 5 million should be entered as 5,000,000. Round your answer to the nearest dollar. $ • to What additional funds would be needed if the company's year-end 2021 assets had been $4 million? Assume that all other numbers are the same. Write out your answer completely. For example, 5 million should be entered as 5,000,000. Round…

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