The most recent financial statements for Cardinal, Incorporated, are shown here:Balance SheetIncome Statement$ 124,000$ 41,600Debt$ 23,20016,400$6,800SalesAssetsEquity82,400Costs$ 124,000$124,000TotalTaxable IncomeTotal1,632$5,168Taxes (24%)Net incomeAssets and costs are proportional to sales. Debt and equity are not. A dividend of $1,640 was paid, and thecompany wishes to maintain a constant payout ratio. Next year's sales are projected to be $28,600.What is the external financing needed?$18,095$20,662$19,379$212,841$24,513

The current costs/sales ratio, dividend payment ratio, and assets/sales ratio can be used to…

Answered: The most recent financial statements…

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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The most recent financial statements for Mandy Company are shown here: Income Statement Balance Sheet $ 11,940 Debt 31,500 Equity Sales Costs Taxable income Taxes (21%) Net income $ 20,100 Current assets 13,800 Fixed assets Internal growth rate $ 6,300 1,323 $ 4,977 Total $ 43,440 % $ 16,420 27,020 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 internal growth rate? (Do not round intermediate calculations and enter your answer as a percent rounded 2 decimal places, e.g., 32.16.) Total $ 43,440
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 Bello Company are shown here: Balance Sheet $ 4,700 Current assets $ 4,996 Debt 3,102 Fixed assets 12,230 Equity Taxable $ $1,598 Total Total income 17,226 Taxes (22%) 352 Net Income $1,246 Income Statement Sales Costs Tran 5.07% Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 32 percent dividend payout ratio. What is the internal growth rate? 5.27% 13.26% 5.17% $ 9,988 7,238 2.37% $ 17,226
In a recent year’s financial statements, Home Depot reported the following: Total liabilities = $38,633 million and Total assets = $42,966 million. Compute and interpret Home Depot’s debt ratio (assume competitors average a 60.0% debt ratio).
The most recent financial statements for Mixton, Incorporated, are shown here: Income Statement Balance Sheet $ 31,400 Assets 18,450 $ 74,000 Debt Equity $ 37,400 36,600 Sales Costs Taxable $ 12,950 Total $ 74,000 Total $ 74,000 income Taxes (24%) 3,108 Net income $ 9,842 Assets and costs are proportional to sales. Debt and equity are not. A dividend of $3,800 was paid, and the company wishes to maintain a constant payout ratio. Next year's sales are projected to be $36,424. What is the external financing needed? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) External financing needed 39
The most recent financial statements for Cardinal, Inc., are shown here: Income Statement Balance Sheet $27,000 17,900 $29,700 35,500 Sales Assets $65,200 Debt Costs Equity Тахable $ 9,100 Total $65,200 Total $65,200 income Taxes (24%) 2,184 Net income $ 6,916 Assets and costs are proportional to sales. Debt and equity are not. A dividend of $2,700 was paid, and the company wishes to maintain a constant payout ratio. Next year's sales are projected to be $31,320. What is the external financing needed? (Do not round intermediate calculations.) External financing needed
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.)
SLM, Inc., with sales of $800, has the following balance sheet: SLM, Incorporated Balance Sheet as of 12/31/X0 Assets Liabilities and Equity Accounts receivable $ 200 Trade accounts payable $ 120 Inventory 360 Long-term debt 510 Plant 800 Equity 730 $ 1,360 $ 1,360 It earns 9 percent on sales (after taxes) and pays no dividends. Round your answers to the nearest dollar. Determine the balance sheet entries for sales of $1,400 using the percent of sales method of forecasting. Accounts receivable: $ Inventory: $ Trade accounts payable: $ Will the firm need external financing to grow to sales of $1,400? If Yes, calculate the amount of external funding required, if No, enter zero. , the amount of the external funds needed is $ . Construct the new balance sheet and use newly issued long-term debt to cover a financial deficiency, if any. SLM, Incorporated Balance Sheet as of 12/31/X1 Assets Liabilities and Equity Accounts…
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 Jordan Company has net income of $73, 500, with sales of $3, 159, 155. Total assets are $560,000, total receivable are $84,000, and the debt - equity ratio is 0.65. What is Jordan's ROE

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