The image displays a multiple choice question with five answer options. Each option is accompanied by a selection circle:1. $3,8892. $4,2643. $4,4194. $4,0095. $4,139The question associated with these options is not visible in the image. There are no graphs or diagrams present. **Financial Statements for Kerch, Incorporated**The most recent financial statements for Kerch, Incorporated, are presented below, assuming no income taxes are applicable:**Income Statement**- **Sales**: $4,400- **Costs**: $3,410- **Net Income**: $990**Balance Sheet**- **Assets**: $15,400 - **Liabilities:** - **Debt**: $10,700 - **Equity**: $4,700- **Total**: $15,400**Notes:**- Assets and costs are proportional to sales. - Debt and equity are not proportional to sales.- No dividends are paid.- The projected sales for next year are $5,966.**Question:**- What is the external financing needed?This information is essential for understanding the financial health of Kerch, Incorporated and planning for future financing needs.

External Financing Needed (EFN) is a financial concept used by businesses to determine how much…

The most recent financial statements for Kerch, Incorporated, are shown here (assuming no income taxes): Income Statement Sales Costs Net income $4,400 3,410 $990 Balance Sheet Assets $15,400 Debt Equity Total $15,400 $10,700 4,700 Total $15,400 Assets and costs are proportional to sales. Debt and equity are not. No dividends are paid. Next year's sales are projected to be $5,966. What is the external financing needed?

The most recent financial statements for Kerch, Incorporated, are shown here (assuming no income taxes): Income Statement Sales Costs Net income $4,400 3,410 $990 Balance Sheet Assets $15,400 Debt Equity Total $15,400 $10,700 4,700 Total $15,400 Assets and costs are proportional to sales. Debt and equity are not. No dividends are paid. Next year's sales are projected to be $5,966. What is the external financing needed?

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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Oregon Office Supply had 24,000,000 in sales last year. The company’s net income was 400,000, its total assets turnover was 6.0, and the company’s ROE was 15 percent. The company is finance entirely with debt and common equity. What is the company’s debt ratio?
Wims, Inc., has sales of $19.9 million, total assets of $14.9 million and total debt of $5.7 million. The profit margin is 12 percent. a. What is the company's net income? (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to the nearest whole number, e.g., 1,234,567.) b. What is the company's ROA? (Do not round intermediate calculations and enter your answer as a percent rounded 2 decimal places, e.g., 32.16.) C. What is the company's ROE? (Do not round intermediate calculations and enter your answer as a percent rounded 2 decimal places, e.g., 32.16.) Net income a. b. ROA C. ROE % %
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 ▬▬▬▬
A company has the following income statement. What is its net operating profit after taxes (NOPAT)? Round it to a whole dollar. Sales $ 1,200 Costs 600 Depreciation 170 EBIT $ ? Interest expense 50 EBT $ ? Taxes (20%) ? Net income $ ?
Green Caterpillar Garden Supplies Inc. reported sales of $890,000 at the end of last year, but this year, sales are expected to grow by 7%. Green Caterpillar expects to maintain its current profit margin of 24% and dividend payout ratio of 10%. The following information was taken from Green Caterpillar’s balance sheet: Total assets: $425,000 Accounts payable: $70,000 Notes payable: $35,000 Accrued liabilities: $60,000 Based on the AFN equation, the firm’s AFN for the current year is Because of its excess funds, Green Caterpillar Garden Supplies Inc. is thinking about raising its dividend payout ratio to satisfy shareholders. Green Caterpillar could pay out of its earnings to shareholders without needing to raise any external capital.(Hint: What can Green Caterpillar increase its dividend payout ratio to before the AFN becomes positive?)
Denver, Incorporated, has sales of $21 million, total assets of $18.3 million, and total debt of $9.5 million. Assume the profit margin is 9 percent. a. What is the company's net income? (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, e.g., 1,234,567.) b. What is the company's ROA? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) c. What is the company's ROE? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
A company's sales last year were $615,000 and its net income was $45.800. It has $465,000 in assets financed only by common equity. Determine the profit margin needed to achieve a 14.5% ROE. Use 4 decimal places in your final answer. Express in percentage
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
DTO, Inc., has sales of $18 million, total assets of $16.5 million, and total debt of $9.4 million. Assume the profit margin is 8 percent. a. What is the company's net income? (Do not round intermediate calculations. Enter your answer in dollars not in millions, e.g., 1,234,567.) b. What is the company's ROA? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) c. What is the company's ROE? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) a. b. C. % %
Borland, Inc., has a profit margin of 6.5 percent on sales of $22,600,000. Assume the firm has debt of $8,700,000 and total assets of $15,300,000. What is the firm's ROA? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Here and Gone, Inc., has sales of $23,759,991, total assets of $11,706,728, and total debt of $4,779,099. If the profit margin is 6 percent, what is ROA? Enter the answer with 4 decimal places (e.g. 0.1234).
Berman & Jaccor Corporation's current sales and partial balance sheet are shown below. This year Sales $ 1,000 Balance Sheet: Assets Cash $ 200 Short-term investments $ 130 Accounts receivable $ 300 Inventories $ 250 Total current assets $ 880 Net fixed assets $ 550 Total assets $ 1,430 Sales are expected to grow by 14% next year. Assuming no change in operations from this year to next year, what are the projected total operating assets? Do not round intermediate calculations. Round your answer to the nearest dollar.

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