The end-of-year balance sheet of a firm that you are following is given below: Cash $ 10,000 Accounts payable $ 30,000 50,000 Other current liabilities 20,000 50,000 150,000 90,000 200,000 $300,000 Receivables Inventories Net fixed assets Total assets $300,000 Long-term debt. Common equity Total liabilities and equity Assume that next year the firm has net income of $15,000, does not repurchase and stock, pays a $5,000 dividend, and invests $10,000 to buy a new machine. Next year, Common Equity will be:

The end-of-year balance sheet of a firm that you are following is given below: Cash $ 10,000 Accounts payable $ 30,000 50,000 Other current liabilities 20,000 50,000 150,000 90,000 200,000 $300,000 Receivables Inventories Net fixed assets Total assets $300,000 Long-term debt. Common equity Total liabilities and equity Assume that next year the firm has net income of $15,000, does not repurchase and stock, pays a $5,000 dividend, and invests $10,000 to buy a new machine. Next year, Common Equity will be:

Financial Management: Theory & Practice

16th Edition

ISBN:9781337909730

Author:Brigham

Publisher:Brigham

Chapter2: Financial Statements, Cash Flow,and Taxes

Section: Chapter Questions

Problem 17P: Athenian Venues Inc. just reported the following selected portion of its financial statements for...

See similar textbooks

Similar questions

From the following forecast the Balance sheet for the year 2021Balance sheet as of 31/12/2020Liabilities& Equity AmountAssetsAmountEquity33,000 Plant and machinery 10,000Retained earnings 10,000 Land Property20.000Accounts payable 7,000 Accounts receivables 3.000Inventories10.000Cash in hand2000Cash at Bank5.00050,00050,0001. It is expected that the company will make a net income of10% of forecasted sales2. The company will purchase additional 5000 OMR worthmachines by taking an additional loan of 5000 OMR3. Forecasted sales OMR 100,0004. Dividend payout will be 50%5. The following estimates are also given;Accounts payable 10,000Accounts receivable 6,000Inventories 15,000Cash in hand 6.000Cash at bank 1,000
Summer Beach Bar Ltd. reported its financial statements for 2020. Assets: 100 million USD Debt: 50 million USD How much equity does Summer Beach Bar Ltd. have in million USD ? a.50 b.150 c.100 d. o
Proforma balance sheet for the upcoming year is given. The estimated net income is $2,621.60. If the company is planning pay $500 dividends, what should be the external financing needs (EFN)? Assets $20,972.80 Debt Equity $20,972.80 Total Total Proforma Balance Sheet Multiple Choice O O -$208.8. $208.8. $500. $291.2. -$500. $11,000.00 $10,181.60 $21,181.60
A company has the following items for the fiscal year 2020: Total Equity = 15 million Total Assets = 30 million EBIT = 4 million Interest expense = 1 million Calculate the company’s equity multiplier and interest coverage ratio
Question / If we have capital 10,000,000, retained earnings 5,000,000, reserves 3,000,000, personal withdrawals 4,000,000, short-term loans 5,000,000, creditors 2,000,000, and payment papers 1,000,000, what is the amount of equity at the end of the year?
The comparative balance sheets for Metlock Corporation show the following information. December 312020 2019Cash $33,500 $12,900Accounts receivable 12,400 10,000Inventory 12,100 9,000Available-for-sale debt investments –0– 3,000Buildings –0– 29,800Equipment 44,800 19,900Patents 5,000 6,300 $107,800 $90,900Allowance for doubtful accounts $3,100 $4,500Accumulated depreciation—equipment 2,000 4,500Accumulated depreciation—building –0– 6,000Accounts payable 5,000 3,000Dividends payable –0– 4,900Notes payable, short-term (nontrade) 3,000 4,100Long-term notes payable 31,000 25,000Common stock 43,000 33,000Retained earnings 20,700 5,900 $107,800 $90,900 Additional data related to 2020 are as follows. 1. Equipment that had cost $11,000 and was 40% depreciated at time of disposal was sold for $2,500.2. $10,000 of the long-term note payable was paid by issuing common stock.3. Cash dividends paid were $4,900.4. On January…
The following information relates to Basic Lid. for the year ended 31" December 2021: Net working capital RO. 1.200.000 Fixed assets to proprietor's fund ratio 0.75 Working capital turnover ratio 5 timeg Return on Equity 15% Current liabilities RO. 400.000 Long term Debts 0 You are required to calculate: Proprietor's funds Fixed Assets Current assets Net profit ratio Current ratio
You have been supplied with the following data for Jazz Limited and its industry averages. Balance Sheet March 31, 2020 Assets: Cash Liabilities and Equity: Accounts Payable Accrued expenses Other current liabilities 12.300 31,500 Accounts Receivable Merchandise Inventory Plant and Equipment 36,000 60,800 1,200 26,000 Long-term debt 10% Preference share capital Ordinary share capital Retained Earnings 151,000 34,000 40,000 100,000 27,400 Total Assets P260,100 Total Liabilities and Equity P260,100 Income Statement March 31, 2020 Sales 225,000 Less: Cost of goods sold Selling expenses Administrative expenses Research and development exp. Interest expense Earnings before taxes Less: Income tax (35%) Net income 152,500 29,500 14,800 6,500 2.900 206,200 18,800 6.580 12.220 5,000 Dividends paid to equity holders Financial Ratios of Company Current ratio Stock turnover Collection period Debt to Equity Interest coverage ratio Asset turnover Financial Ratios of industry 2.2 2.8 times 56 days…
At the end of the year 2020, the common equity was 490,000, and the dividends paid in the year 2021 was $11,000. What is the free cash flow to equity for the year 2021? Assets Cash and Cash Equivalents Short-term Investments Inventory Accounts Receivables Total Current Assets Fixed Assets Total Assets 128,000 -106,000 106,000 -128,000 2021 63,000 3,000 21,000 20,000 107,000 650,000 757,000 Liabilities. Current Liabilities Long-term Liabilities Total Liabilities Total Common Equity 2021 40,000 120,000 150,000 607,000
Given the following Year 9 selected balance sheet data: Assets Cash on Hand Total Current Assets Total Fixed Asset Investments Total Assets Liabilities and Shareholder Equity Accounts Payable Overdraft Loan Payable 1-Year Bank Loan Payable Current Portion of Long-Term Loans $116,000 235,000 230,000 $465,000 $ 56,000 0 0 17,000 Total Current Liabilities 73,000 Long-Term Bank Loans 46,000 Total Liabilities 119,000 Year 8 Year 9 Shareholder Equity: Balance Change Common Stock (at a par value of $0.50 per share 10,050 0 10,050 Additional Capital 81,500 0 81,500 Retained Earnings Total Shareholder Equity Total Liabilities and Shareholder Equity 162,450 92,000 254,450 254,000 +92,000 346,000 $465,000 Based on the above figures and the definition of the debt:equity percentages (or debt%:equity%) presented in the Help section for p. 5 of the Camera and Drone Journal, the company's debt:equity percentages (rounded to the nearest whole percentage--like 25% and 75%) and its current ratio are
The financial statements of the company for the past two years are summarised below: Particulars 2020 2021 Assets: Cash Nil 2000 Trade debtors 55000 40000 Stock -in-trade 55000 45000 Fixed Assets (Net ) 137000 145000 247000 232000 Liabilities: Trade creditors 32000 25000 Provision for taxation 11000 9000 Bank Overdraft 12000 Nil Paid - Up capital 150000 150000 General reserve 30000 35000 P&L Appropriation A/c 12000 13000 247000 232000 Net income Statement 2020 2021 Sales 400000 375000 Less: COGS 245000 225000 Other expenses 130000 (375000) 132000 (357000) Net Profit 25000 18000 Opening stock on 1st January 2020 was Rs.60000 Calculate the following ratios for two years: -1) Current Ratio 2) Quick ratio 3) Stock Turnover ratio 4) Debtors' turnover ratio 5) Average collection period Assume 360 days in a year
Calculate the 2020 quick ratio using the following information: Balance Sheet Cash and Cash Equivalents Marketable Securities Accounts Receivable Total Current Assets Total Assets Current Liabilities Long Term Debt Shareholders Equity Income Statement Interest Expense Net Income Before Income Taxes .60 .80 .10 ).67 2020 5,000 15,000 10,000 40,000 70,000 50,000 10,000 10,000 7,500 45,000