Please correct answer and don't use hand rating Problem 4-6 Calculating Internal Growth [LO3]The most recent financial statements for Marcus Company are shown here:SalesCostsBalance Sheet$ 11,720Income Statement$ 19,000 Current assets12,880Fixed assets26,550Taxable income$ 6,120Total$ 38,270Taxes (21%)1,285$ 4,835DebtEquityTotal$ 15,76022,510$ 38,270Net incomeAssets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 35 percent dividend payoutratio. What is the internal growth rate?Note: Do not round intermediate calculations and enter your answer as a percent rounded 2 decimal places, e.g., 32.16.Internal growth rate%

Internal Growth Rate=(ROA×b)/(1−ROA×b)Where:ROA (Return on Assets) = Net Income/Total Assetsb =…

Answered: Problem 4-6 Calculating Internal Growth…

Survey of Accounting (Accounting I)

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ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter4: Accounting For Retail Operations

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Problem 4.2MBA: Sales transactions Using transactions listed in P4-2, indicate the effects of each transaction on...

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Problem 16-17 (Static) Interpretation of Financial Ratios [LO16-2, LO16-3, LO16-6] Pecunious Products, Incorporated's financial results for the past three years are summarized below: Sales trend Current ratio Acid-test ratio Accounts receivable turnover Inventory turnover Dividend yield Dividend payout ratio Dividends paid per share* Year 3 128.0 2.5 9.4 6.5 7.1% 40% $1.50 Year 2 115.0 2.3 0.9 10.6 7.2 6.5% 50% $ 1.50 Year 1 100.0 2.2 1.1 12.5 8.0 5.8% 60% $ 1.50 *There have been no changes in common stock outstanding over the three-year period. Required: Review the results above and answer the following questions: 1. Is it becoming easier for the company to pay its bills as they come due? 2. Are customers paying their accounts at least as fast now as they were in Year 1? 3. Are the accounts receivable increasing, decreasing, or remaining constant? 4. Is inventory increasing, decreasing, or remaining constant? 5. Is the market price of the company's stock going up or down? 6. Is the…
Problem 13-2A (Algo) Ratios, common-size statements, and trend percents LO P1, P2, P3 [The following information applies to the questions displayed below] Selected comparative financial statements of Korbin Company follow. KORBIN COMPANY Comparative Income Statements For Years Ended December 31 2021 2020 2019 Sales Cost of goods sold $ 402,346 $ 308,230 242,212 $ 213,900 194,493 136,896 Gross profit 160,134 113,737 77,004 Selling expenses 57,133 42,536 28,235 Administrative expenses 36,211 27,124 17,754 Total expenses 93,344 69,660 45,989 Income before taxes Income tax expense 66,790 44,077 31,015 12,423 9,036 6,296 Net income $ 54,367 $ 35,041 $ 24,719 KORBIN COMPANY Comparative Balance Sheets December 31 Assets Current assets Long-term investments Plant assets, net Total assets Current liabilities Liabilities and Equity Common stock Other paid-in capital Retained earnings Total liabilities and equity $ 180,932 2021 $ 63,959 116,973 0 2020 $ 42,808 800 106,691 $ 180,932 $ 150,299 $…
Solvency and Profitability Trend Analysis Crosby Company has provided the following comparative information: 20Y8 20Y7 20Y6 20Y5 20Y4 Net income $5,571,720 $3,714,480 $2,772,000 $1,848,000 $1,400,000 Interest expense 1,052,060 891,576 768,600 610,000 500,000 Income tax expense 1,225,572 845,222 640,320 441,600 320,000 Total assets (ending balance) 29,378,491 22,598,839 17,120,333 12,588,480 10,152,000 Total stockholders’ equity (ending balance) 18,706,200 13,134,480 9,420,000 6,648,000 4,800,000 Average total assets 25,988,665 19,859,586 14,854,406 11,370,240 8,676,000 Average total stockholders' equity 15,920,340 11,277,240 8,034,000 5,724,000 4,100,000 You have been asked to evaluate the historical performance of the company over the last five years. Selected industry ratios have remained relatively steady at the following levels for the last five years: 20Y4–20Y8…
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Ratio Analysis 2.105 Ising the following data, complete the Balance Sheet below: Gross Profit (20% of sales) Shareholders' Equity 7 60,000 7 50,000 Credit Sales to Total sales 80% Total Assets Turnover (Sales/Total Assets) 3 times Inventory Turnover (to cost of Sales) Average Collection Period (360 days a year) 8 times 18 days Current ratio 1.6 Long-term debt to Equity 40% Balance Sheet Creditors Cash Long-term Debt Shareholders' Equity Debtors Inventory Fixed Asset ..... ... .000:
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TEST YOUR UNDERSTANDING A Review of Ratio Analysis Activity 10 Y ORACLE CORPORATION Ear the fiscal year ended. Current ratio 5/31/97 5/31/98 1.74 5/31/99 (PAL/S) 1.79 1.70 (P/L/S) Debt ratio 0.491 0.492 0.488 (P/L/S) Return on sales 0.15 0.11 ´ 0.14 (РLIS) Return on assets 0.18 0.14 0.18 Source: Disclosure, Ina, Compact D/SEC, 2000. 1. In the left-hand margin above, circle whether the ratio measures (P)rofitability, short-term (L)iquidity - the ability to pay current debt, or long-term (S)ölvency - the ability to pay long-term debt. 2. For each short-term liquidity ratio above, circle the ratio indicating the greatest ability to pay current liabilities for the `three years of information presented. This company appears to (have / not have) the ability to pay current debt. 3. For each long-term solvency ratio above, circle the ratio indicating the least amount of debt financing for the three years of information presented. This company relies more heavily on (debt / equity) to finance…
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