Smiley Corporation's current sales and partial balance sheet are shown below. This year Sales $ 10,000 Balance Sheet: Liabilities Accounts payable $ 1,000 Notes payable $ 3,000 Accruals $ 1,600 Total current liabilities $ 5,600 Long-term bonds $ 2,000 Total liabilities $ 7,600 Common stock $ 1,000 Retained earnings $ 2,500 Total common equity $ 3,500 Total liabilities & equity $ 11,100 Sales are expected to grow by 10% next year. Assuming no change in operations from this year to next year, what are the projected spontaneous liabilities? Do not round intermediate calculations. Round your answer to the nearest dollar. $
Debenture Valuation
A debenture is a private and long-term debt instrument issued by financial, non-financial institutions, governments, or corporations. A debenture is classified as a type of bond, where the instrument carries a fixed rate of interest, commonly known as the ‘coupon rate.’ Debentures are documented in an indenture, clearly specifying the type of debenture, the rate and method of interest computation, and maturity date.
Note Valuation
It is the process to determine the value or worth of an asset, liability, debt of the company. It can be determined by many processes or techniques. Many factors can impact the valuation of an asset, liability, or the company, like:
Smiley Corporation's current sales and partial
| This year | ||||
| Sales | $ | 10,000 | ||
| Balance Sheet: Liabilities | ||||
| Accounts payable | $ | 1,000 | ||
| Notes payable | $ | 3,000 | ||
| Accruals | $ | 1,600 | ||
| Total current liabilities | $ | 5,600 | ||
| Long-term bonds | $ | 2,000 | ||
| Total liabilities | $ | 7,600 | ||
| Common stock | $ | 1,000 | ||
| $ | 2,500 | |||
| Total common equity | $ | 3,500 | ||
| Total liabilities & equity | $ | 11,100 |
Sales are expected to grow by 10% next year. Assuming no change in operations from this year to next year, what are the projected spontaneous liabilities? Do not round intermediate calculations. Round your answer to the nearest dollar.
$
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