The most recent financial statements for Anderson Company are shown here: Income Statement Sales Costs Taxable income Taxes (25%) Net income $75,000 26,600 $ 48,400 12,100 Maximum increase in sales $36,300 Current assets Fixed assets Total Balance Sheet Long-term debt Equity $ 159,000 Total $ 31,500 127,500 $ 68,000 91,000 $159,000 Assets and costs are proportional to sales. Long-term debt and equity are not. The company maintains a constant 35 percent dividend payout ratio and a constant debt- equity ratio. What is the maximum increase in sales that can be sustained assuming no new equity is issued? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

The most recent financial statements for Anderson Company are shown here: Income Statement Sales Costs Taxable income Taxes (25%) Net income $75,000 26,600 $ 48,400 12,100 Maximum increase in sales $36,300 Current assets Fixed assets Total Balance Sheet Long-term debt Equity $ 159,000 Total $ 31,500 127,500 $ 68,000 91,000 $159,000 Assets and costs are proportional to sales. Long-term debt and equity are not. The company maintains a constant 35 percent dividend payout ratio and a constant debt- equity ratio. What is the maximum increase in sales that can be sustained assuming no new equity is issued? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Name: The most recent financial statements for Anderson Company are shown h
Uploaded: 2024-03-20T06:33:21.000Z
Channel: Bartleby
Description: The most recent financial statements for Anderson Company are shown here:SalesCostsIncome StatementTaxable incomeTaxes (25%)Net income$75,00026,600$ 48,400Maximum increase in sales12,100$36,300CurrentassetsFixed assetsTotalBalance Sheet$ 31,500127,5

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

See similar textbooks

Similar questions

The most recent financial statements for Mixton, Incorporated, are shown here: INCOME STATEMENT Sales Costs Taxable income Taxes (22%) Net income $ 52,000 Assets 42,400 $ 9,600 2,112 $ 7,488 Total BALANCE SHEET Debt Equity Total Answer is complete but not entirely correct. External financing needed s 11,990 X $ 115,700 $ 115,700 $ 34,500 81,200 $ 115,700 Assets and costs are proportional to sales. Debt and equity are not. A dividend of $2,900 was paid, and the company wishes to maintain a constant payout ratio. Next year's sales are projected to be $61,360. What is the external financing needed? Note: Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.
Consider the following income statement for the Heir Jordan Corporation: HEIR JORDAN CORPORATIONIncome Statement Sales $ 47,600 Costs 35,600 Taxable income $ 12,000 Taxes (25%) 3,000 Net income $ 9,000 Dividends $ 3,000 Addition to retained earnings 6,000 The balance sheet for the Heir Jordan Corporation follows. Based on this information and the income statement, supply the missing information using the percentage of sales approach. Assume that accounts payable vary with sales, whereas notes payable do not. (Leave no cells blank - be certain to enter "0" whenever the item is not a constant percentage of sales. Enter each answer as a percent rounded 2 decimal places, e.g., 32.16.) HEIR JORDAN CORPORATION Balance Sheet Percentage of Sales Percentage of Sales Assets…
The most recent financial statements for Alexander Co. are shown here: Income Statement Balance Sheet Sales $50,000 Current assets $78,300 Long-term debt $54,000 Costs 32,000 Fixed assets 43,200 Equity 67,500 Taxable income $18,000 Total $121,500 Total $121,500 Taxes (23%) 4,140 Net income $13,860 Assets and costs are proportional to sales. The company maintains a constant 36 percent dividend payout ratio and a constant debt-equity ratio. What is the maximum increase in sales that can be sustained assuming no new equity is issued?
Income Statement Balance Sheet Sales $ 29,300 Assets $ 22,500 Debt $ 6,000 Costs 22,870 Equity 16,500 Net income $ 6,430 Total $ 22,500 Total $ 22,500 The company has predicted a sales increase of 6 percent. Assume the company pays out half of net income in the form of a cash dividend. Costs and assets vary with sales, but debt and equity do not. Prepare the pro forma statements. (Input all amounts as positive values. Do not round intermediate calculations and round your answers to the nearest whole dollar amount.) Pro forma income statement Pro forma balance sheet Sales Assets Debt Costs Equity Net income Total Total What is the external financing needed?
The most recent financial statements for Hornick, Inc., are shown below (assuming no income taxes). Assets and costs are proportional to sales. Debt and equity are not. No dividends are paid. Next year's sales are projected to be $8,968. What is the external financing needed? Income statement $ $ Next year's sales $ Sales Costs Net income 7,600 5,180 2,420 Sales Costs Net income 8,968 Pro forma income statement External financing Assets $ Total $ Complete the following analysis. Do not hard code values in your calculations. Percent increase in sales Assets Balance sheet 21,700 Debt Equity 21,700 Total $ Total $ Pro forma balance sheet Debt Equity Total 9,100 12,600 21,700 ▬▬▬▬
The most recent financial statements for Martin, Inc., are shown here: Income Statement $18,000 -10,800 $7,200 -1,512 Sales Costs Taxable income Taxes (21%) Net income $5,688 Balance Sheet $40,000 33,800 Assets $73,800 Debt Equity Total $73,800 Total $73,800 Assets and costs are proportional to sales. Debt and equity are not. A dividend of $985 was paid, and Martin wishes to maintain a constant payout ratio. Next year's sales are projected to be $22,320. What is the external financing needed? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
The most recent financial statements for Cardinal, Inc., are shown here: Income Statement Sales Costs Taxable income $30,600 18,350 Balance Sheet Assets $72,400 Debt $36,000 Equity 36,400 $12,250 Total $72,400 Total $72,400 Taxes (22%) 2,695 Net income $ 9,555- Assets and costs are proportional to sales. Debt and equity are not. A dividend of $3,600 was paid, and the company wishes to maintain a constant payout ratio. Next year's sales are projected to be $34,272. What is the external financing needed? (Do not round intermediate calculations.)
The Lawrence Company has a ratio of long term debt to long term debt plus equity of .39 and a current ratio of 1.7. Current liabilities are 950, sales are 6370, profit margin is 9.8 percent, and ROE is 20 percent. What is the amount of the firms net fixed assets?
The most recent financial statements for Mandy Company are shown here: Income Statement Balance Sheet $ 11,760 27,450 $ 39,210 Sales Costs Taxable income Taxes (24%) Net income $19,200 13,050 $ 6,150 Sustainable growth rate 1,476 $4,674 Current assets Fixed assets Total Debt Equity % Total Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 45 percent dividend payout ratio. What is the sustainable growth rate? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) $ 15,880 23,330 $ 39,210
The most recent financial statements for Minnie's Manufacturing Co. are shown below: Income Statement Balance Sheet .95,400 Current Sales $35,500 Debt $ 46,200 assets 68,250 Costs Fixed assets 95,300 Equity 84,600 130,800 Taxable income $27,150 Total 2$ Total $130,800 Тax 6,245 Net Income $20,905 Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 30 percent dividend payout ratio. No external financing is possible. What is the internal growth rate? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Internal growth rate %
The most recent financial statements for Mixton, Incorporated, are shown here: INCOME STATEMENT Sales Costs Taxable income Taxes (24%) Net income $ 54,000 Assets 44,200 $9,800 External financing needed 2,352 $ 7,448 Total BALANCE SHEET Debt Equity Total $ 118,900 $ 118,900 $36,300 82,600 $ 118,900 Assets and costs are proportional to sales. Debt and equity are not. A dividend of $3,100 was paid, and the company wishes to maintain a constant payout ratio. Next year's sales are projected to be $62,100. What is the external financing needed? Note: Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.
The most recent financial statements for Mandy Company are shown here: Income Statement Balance Sheet $ 20,500 $ 16,660 Sales Current assets $ 12,020 Debt Costs 14,100 Fixed assets 33,300 Equity 28,660 Taxable income $ 6,400 Total Total $ 45,320 45,320 Taxes (21%) 1,344 Net income $ 5,056 Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 30 percent dividend payout ratio. What is the sustainable growth rate? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Sustainable growth rate %

SEE MORE QUESTIONS

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS