Sales $ 1,000 Balance Sheet: Assets Cash $ 100 Short-term investments $ 85 Accounts receivable $ 300 Inventories $ 100 Total current assets $ 585 Net fixed assets $ 450 Total assets $ 1,035 Sales are expected to grow by 10% next year. Assuming no change in operations from this year to next year, what are the projected total operating assets?

Sales $ 1,000 Balance Sheet: Assets Cash $ 100 Short-term investments $ 85 Accounts receivable $ 300 Inventories $ 100 Total current assets $ 585 Net fixed assets $ 450 Total assets $ 1,035 Sales are expected to grow by 10% next year. Assuming no change in operations from this year to next year, what are the projected total operating assets?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Current Attempt in Progress Oriole Limited reported the following information (in millions) at…

A: The ratio analysis helps to analyze the financial statements of the business. The assets turnover is…

Q: Austin Grocers recently reported the following 2019 income statement (in millions of dollars):…

A: The income statement analysis is a part of the financial statement analysis that is used to find out…

Q: im.3

A: First, we need to calculate the change in current assets and current liabilities. Since both are…

Q: alculate the projected inventory turnover, days sales outstanding (DSO), fixed assets turnover, and…

Q: Compute the Sales Growth Index and select the best Answer: 12/31/2020…

A: Sales growth index = Net sales year 2 / Net sales year 1

Q: Sales for Company Y are $100,000 in 2019 and the net profit margin is 9.0%. The Return on Equity is…

A: Solution:- Net profit margin means the amount of net profit as a percentage of sales. So, net profit…

Q: Blaser Corporation had $1,092,000 in invested assets, sales of $1,214,000, income from operations…

A: Return on investment = Income from operation / Average investment where, Average investment =…

Q: Year Sales 1 270 Growth versus Prior Year 12.5% EBIT (10% of Sales) 27.00 Less: Income Tax (20%)…

A: The present value of the free cash flows will give us the enterprise value. We can find the stock…

Q: Suppose Naboo Manufacturing's sales increase 20% over the next year. Assuming that all asset…

A: Taxes Taxes are the amounts that defines the obligation of the taxpayers to pay tax over the income…

Q: Projected Operating Assets Berman & Jaccor Corporation's current sales and partial balance sheet…

Q: 2.Berman & Jaccor Corporation's current sales and partial balance sheet are shown below. This…

A: Operating assets include cash, accounts receivable, inventories and net fixed assets.Formula,Total…

Q: Help with question solution

A: Step 1:3. Calculate Projected EBIT:Projected EBIT: $910 million - $682.5 million = $227.5 million4.…

Q: It is currently the beginning of 2024. The information regarding a company is below: • Sales was…

A: Given that the sales for 2023 were $350 million and they are expected to grow at 6% per year during…

Q: Projected Operating Assets Berman & Jaccor Corporation's current sales and partial balance sheet are…

A: Cash, accounts receivable, inventories and net fixed assets are Operating assets.

Q: None

A: Step 1: Step 2:Devaney's projected 2019 net income is $112.50 millionBased on assumptions that the…

Q: Projected Operating Assets Berman & Jaccor Corporation's current sales and partial balance sheet are…

A: Cash, accounts receivable, inventories and net fixed assets are Operating assets.

Q: The following additional information is also available: 1 Operating profit is expected to be 15 per…

A: Projected cash flow shows the future expected cash flows that are based on the existing data…

Q: Use the table for the question(s) below FCF Forecast (5 million) Year Sales Growth vs. Prior Year…

A: The stock price at the start of year 1 can be calculated as follows: Calculate the terminal value…

Q: Projected Operating Assets Berman & Jaccor Corporation's current sales and partial balance sheet are…

A: Operating assets refer to the assets acquired by the business that help in run day-to-day business…

Question

Sales	$	1,000
Balance Sheet: Assets
Cash	$	100
Short-term investments	$	85
Accounts receivable	$	300
Inventories	$	100
Total current assets	$	585
Net fixed assets	$	450
Total assets	$	1,035

Sales are expected to grow by 10% next year. Assuming no change in operations from this year to next year, what are the projected total operating assets?

Definition Definition Money that the business will be receiving from its clients who have utilized the credit provided to buy its goods and services. The credit period typically lasts for a short term, lasting from a few days, a few months, to a year.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Working:

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Projected Operating Assets Berman & Jaccor Corporation's current sales and partial balance sheet are shown below. Sales Balance Sheet: Assets Cash Short-term investments Accounts receivable Inventories Total current assets Net fixed assets Total assets This year $1,000 $ 200 $ 90 $ 300 $300 $ 890 $ 450 $1,340 Sales are expected to grow by 12% next year. Assuming no change in operations from this year to next year, what are the projected total operating assets? Do not round intermediate calculations. Round your answer to the nearest dollar.
Use the table for the question(s) below. FCF Forecast ($ million) Year Sales 1 270 12.5% 32.40 Less: Income Tax (37%) (6.48) Less Increase in NWC (12% of Change in Sales) 3,60 Free Cash Flow 22.32 Growth versus Prior Year EBIT (10% of Sales) 0 240 OA. $4.27 OB. $7.47 OC. $12.8 OD. $5.12 2 290 7.4% 34.80 (6.96) 2.40 25.44 ACCE 3 310 6.9% 37.20 (7.44) 2.40 27.36 Banco Industries expect sales to grow at a rapid rate over the next 3 years, but settle to an industry growth rate of 4% in year 4. The spreadsheet above shows a simplified pro forma for Banco Industries. Banco industries has a weighted average cost of capital of 10%, $30 million in cash, $60 million in debt, and 18 million shares outstanding. If Banco Industries can reduce its operating expenses so that EBIT becomes 12% of sales, by how much will its stock price increase? 4 325.5 5.0% 39.06 (7.81) 1.86 29.388
Quantitative Problem: Beasley Industries' sales are expected to increase from $4 million in 2017 to $5 million in 2018, or by 25%. Its assets totaled $2 million at the end of 2017. Beasley is at full capacity, so its assets must grow in proportion to projected sales. At the end of 2017, current liabilities are $750,000, consisting of $120,000 of accounts payable, $350,000 of notes payable, and $280,000 of accrued liabilities. Its profit margin is forecasted to be 4%, and its dividend payout ratio is 70%. Using the AFN equation, forecast the additional funds Beasley will need for the coming year. Round your answer to the nearest dollar. Do not round intermediate calculations.$ The AFN equation assumes that ratios remain constant. However, firms are not always operating at full capacity so adjustments need to be made to the existing asset forecast. Excess capacity adjustments are changes made to the existing asset forecast because the firm is not operating at full capacity. For…
please answer the following question
Excel Online Structured Activity: Income and Cash Flow Analysis The Berndt Corporation expects to have sales of $11 million. Costs other than depreciation are expected to be 80% of sales, and depreciation expected to be $1.1 million. All sales revenues will be collected in cash, and costs other than depreciation must be paid for during the year. Brendt's federal-plus-state tax rate is 40%. Berndt has no debt. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below. Open spreadsheet a. Set up an income statement. What is Berndt's expected net cash flow? Enter your answer in dollars. For example, an answer of $1.2 million should be entered as 1,200,000. Round your answer to the nearest dollar. $ b. Suppose Congress changed the tax laws so that Berndt's depreciation expenses doubled. No changes in operations occurred. What is Berndt's expected net cash flow? Round your answer to the nearest…
Projected Operating Assets 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 $ 130 Accounts receivable $ 300 Inventories $ 250 Total current assets $ 830 Net fixed assets $ 600 Total assets $ 1,430 Sales are expected to grow by 10% 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. $
Forecast Orwell's additional funds needed (AFN) for next year. Assuming the firm is operating at only 50% of capacity and using the data in the table below, forecast Orwell's AFN for the coming year? Current Assets may be considered negligible. Last year's sales = S0 $164,000 Last year's accounts payable $40,000 Sales growth (ΔS) $46,000 Last year's notes payable $10,000 Last year's total assets = A0* $268,000 Last year's accruals $10,000 Last year's profit margin = PM 0.00 Target payout ratio 0.1
Quantitative Problem: Beasley Industries' sales are expected to increase from $5 million in 2017 to $6 million in 2018, or by 20%. Its assets totaled $3 million at the end of 2017. Beasley is at full capacity, so its assets must grow in proportion to projected sales. At the end of 2017, current liabilities are $790,000, consisting of $140,000 of accounts payable, $400,000 of notes payable, and $250,000 of accrued liabilities. Its profit margin is forecasted to be 4%, and its dividend payout ratio is 60%. Using the AFN equation, forecast the additional funds Beasley will need for the coming year. Do not round intermediate calculations. Enter your answer in dollars. For example, an answer of $2 million should be entered as 2,000,000. Round your answer to the nearest dollar.
Quantitative Problem 1: Beasley Industries' sales are expected to increase from $4 million in 2017 to $5 million in 2018, or by 25%. Its assets totaled $2 million at the end of 2017. Beasley is at full capacity, so its assets must grow in proportion to projected sales. At the end of 2017, current liabilities are $720,000, consisting of $140,000 of accounts payable, $350,000 of notes payable, and $230,000 of accrued liabilities. Its profit margin is forecasted to be 4%, and its dividend payout ratio is 50%. Using the AFN equation, forecast the additional funds Beasley will need for the coming year. Do not round intermediate calculations. Enter your answer in dollars. For example, an answer of $2 million should be entered as 2,000,000. Round your answer to the nearest dollar
Provide correct solution