The most recent financial statements for Bello Co. are shown here: Income Statement Sales Costs Taxable income $20,400 14,000 $ 6,400 Taxes (22%) Net income $4,992 1,408 Balance Sheet $12,000 Debt $ 16,600 28,250 Current assets Fixed assets 32,850 Equity Total $44,850 Total $44,850 Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 35 percent dividend payout ratio. What is the internal growth rate? (Do not round intermediate calculations and enter your answer as a percent rounded 2 decimal places, e.g., 32.16.)

The most recent financial statements for Bello Co. are shown here: Income Statement Sales Costs Taxable income $20,400 14,000 $ 6,400 Taxes (22%) Net income $4,992 1,408 Balance Sheet $12,000 Debt $ 16,600 28,250 Current assets Fixed assets 32,850 Equity Total $44,850 Total $44,850 Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 35 percent dividend payout ratio. What is the internal growth rate? (Do not round intermediate calculations and enter your answer as a percent rounded 2 decimal places, e.g., 32.16.)

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

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10: Application of Financial Ratios Used to Measure Profitability The income statement of Garnet Mfg. Corp. for 2018 shows the following: Sales, net P 700,000 15,000 400,000 Net credit sales Cost of goods sold Cost of goods manufactured Net credit purchases 410,000 150,000 225,000 90,000 212,500 20,000 Raw materials used Net income Total operating expenses Depreciation Net income 90,000 The balance sheet figures as of December 31, 2017 and 2018 are as follows: December 31 2017 2018 P12,500 P 25,000 Cash 17,500 28,750 Marketable securities 10,000 20,000 Accounts receivable, net Inventories: 25,000 35,000 Finished goods Work in process 22,500 15,000 3,750 P 150,000 37,500 17,500 10,000 Raw materials Prepaid expenses Total current assets 2,500 P95,000 37,500 Investments 117,500 187,500 Plant, property and equipment, net
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…
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Garden Pro Corporation has sales of $4,953,171; income tax of $343,835; the selling, general and administrative expenses of $203,842; depreciation of $382,438; cost of goods sold of $2,453,450; and interest expense of $155,731. Calculate the firm’s net income?
Garden Pro Corporation has sales of $4,374,312; income tax of $562,963; the selling, general and administrative expenses of $291,061; depreciation of $399,602; cost of goods sold of $2,863,521; and interest expense of $105,428. Calculate the firm's net income?
The following information comes from the accounting records of Wildhorse Ltd.: Statement of Financial Position Assets Cash Accounts receivable Inventory Capital assets (net) Other assets Liabilities and shareholders' equity Accounts payable Long-term debt Common shares Retained earnings Statement of Income Sales Cost of goods sold Other expenses Income tax Net income (a1) Sales Cost of goods sold Gross margin Other expenses Income taxes Net income Current ratio Quick ratio A/R turnover Average collection period Inventory turnover 2022 Days to sell inventory $34,900 101,700 164,000 639,000 345,000 $149,000 300,000 779,000 757,000 402,000 $1,284,600 $1,341,000 $1,556,000 56,600 254,160 2022 21,180 17,000 $4,180 100 % 74 % $1,284,600 $1,341,000 26 % $1,059,000 $1.199,000 783,660 24 % 1.6 % 0.39 % 2022 2023 $32,000 3.2 119,000 9.5 195,000 Based on the above information, analyze the changes in the company's profitability and liquidity, in addition to the management of accounts receivable…
LAG Network Inc.'s balance sheet and income statement are as follows: LAG Network Inc. Income Statement For Year Ended December 31, 2023 Sales Cost of goods sold Gross profit Operating expenses: Depreciation expense Other expenses Total operating expenses Profit from operations Income taxes Profit Assets $ 25,200 215,800 LAG Network Inc. Comparative Balance Sheet Information $ 920,600 548,200 $372,400 241,000 $ 131,400 14,600 $ 116,800 December 31 2023 2022 Cash Accounts receivable $ 81,110 $ 52,800 Merchandise inventory Equipment Accumulated depreciation Total assets Liabilities and Equity 40,400 287,790 36,800 235,800 $ 491,900 Accounts payable Income taxes payable Common shares Retained earnings $ 23,200 3,600 355,000 110,100 146,400 (63,800) 136,800 (38,600) $ 423,600 $ 35,800 2,200 349,500 36,100 Total liabilities and equity $ 491,900 $ 423,600 Additional information regarding LAG Network Inc.'s activities during 2023: a. Equipment is purchased for $9,600 cash. b. 2,200 common…
The most recent financial statements for Mandy Company are shown here: Income Statement Balance Sheet Sales $ 16,400 Current assets $ 11,200 Debt $ 13,600 Costs 11,200 Fixed assets 24,300 Equity 21,900 Taxable income $ 5,200 Total $ 35,500 Total $ 35,500 Taxes (21%) 1,092 Net income $ 4,108 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?

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