61.42pointsThe most recent financial statements for Mandy Company are shown below:Balance Sheet$33,500 DebtIncome StatementSalesCostsTaxable incomeMcGrawHillOType here to searchTax (24%)Net Income$ 93,000 Current assets67,050Fixed assetsTotal$ 25,9506,228$ 19,722X Answer is complete but not entirely correct.Sustainable growth rate16.48 %94,100 EquityTotal$ 127,600Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 30 percent dividend payoutratio. No external equity financing is possible. What is the sustainable growth rate?Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.$ 43,80083,800$ 127,600< Prev 6 of 7Next >

Net Income: $19,722Equity (from the balance sheet): $13,800Dividend Payout Ratio: 30% (stated as a…

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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Judd Enterprises These are the simplified financial statements for Judd Enterprises. Income statement Current Projected Sales na 1,000 Costs na 700 Profit before tax 300 na Taxes na 90 Net income na 210 Dividends na 63 Balance sheets Current Projected Current Projected Current assets 100 115 Current liabilities 70 81 Net fixed assets Long-term debt 900 1,080 400 Common stock 300 Retained earnings 230 Refer to the Judd Enterprises financial statements. If Judd does not plan on issuing new stock or additional long-term debt, then what is the additional net financing needed for the projected year? a. $30 b. $396 $339 d. $33 e. $37 ai
Broward Manufacturing recently reported the following information: Net income $770,000 ROA 7% Interest expense $292,600 Accounts payable and accruals $1,000,000 Broward's tax rate is 40%. Broward finances with only debt and common equity, so it has no preferred stock. 40% of its total invested capital is debt, while 60% of its total invested capital is common equity. Calculate its basic earning power (BEP), its return on equity (ROE), and its return on invested capital (ROIC). Do not round intermediate calculations. Round your answers to two decimal places. ВЕР % ROE % ROIC
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
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?
Calculate Zumwalt’s net profit margin and debt ratio. Earth’s Best Company has sales of $200,000, a net income of $15,000, and the following balance sheet: Cash $10,000 Receivable 50,000 Inventories 150,000 Net fixed assets 90,000 Total assets $300,000 Account payable $30,000 Other current liabolities 20,000 Long-term debt 50,000 Common equity 200,000 Total liabilities and equity $300,000 C. Explain how we could have set the problem up to have you focus on chang- ing accounts receivable, or fixed assets, or using the funds generated to retire debt (we would give you the interest rate on outstanding debt), or how the original problem could have stated that the company needed more invento- ries and it would finance them with new common equity or with new debt.
Broward Manufacturing recently reported the following information: Net income ROA BEP: 26.73 Interest expense $102,120 Accounts payable and accruals $950,000 Broward's tax rate is 25%. Broward finances with only debt and common equity, so it has no preferred stock. 40% of its total invested capital is debt, and 60% of its total invested capital is common equity. Calculate its basic earning power (BEP), its return on equity (ROE), and its return on invested capital (ROIC). Do not round intermediate calculations. Round your answers to two decimal places. ROE: 73.60 ROIC: 44.55 % % $276,000 % 8%
Pribyl Corporation has provided the following financial data: Total assets Total stockholders' equity Income Statement For the Year Ended December 31, Year 2 $ Sales (all on account) Cost of goods sold Gross margin Operating expenses Net operating income Interest expense Net income before taxes Income taxes (36%) Net income a. Net profit margin percentage b. Gross margin percentage c. Return on total assets d. Return on equity % 1,285,000 727,000 558,000 510,846 Required: a. What is the company's net profit margin percentage for Year 2? b. What is the company's gross margin percentage for Year 2? c. What is the company's return on total assets for Year 2? d. What is the company's return on equity for Year 2? Note: Round your answers to 2 decimal places. % % 47,154 17,500 29,654 10.675 $ 18,979 $ 1.496.000 $ 1,033,000 $ 1,470,000 $ 1,020,000
Last year Harrington Inc. had sales of $325,000 and a net income of $19,000, and its year-end assets were $250,000. The firm's total-debt-to-total-capital ratio was 17.5%. The firm finances using only debt and common equity, and its total assets equal total invested capital. Based on the DuPont equation, what was the ROE? Do not round your intermediate calculations. O a. 9.49% O b. 11.52% O c. 9.21% O d. 7.74% O e. 9.86%
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 below: Balance Sheet $ 32,000 Debt 93,200 Equity $ 125,200 Total Income Statement Sales Costs Taxable income Tax (218) Net Income $91,200 Current assets 66,150 Fixed assets $ 25,050 5,261 Total $ 19,789 Sustainable growth rate Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 35 percent dividend payout ratio. No external equity financing is possible. What is the sustainable growth rate? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. $ 42,000 83,200 $ 125,200 %
Assume you are given the following relationships for the Haslam Corporation: Sales/total assets 1.5 Return on assets (ROA) 4% Return on equity (ROE) 6% Calculate Haslam's profit margin and liabilities-to-assets ratio. Do not round intermediate calculations. Round your answers to two decimal places. Profit margin: % Liabilities-to-assets ratio: % Suppose half of its liabilities are in the form of debt. Calculate the debt-to-assets ratio. Do not round intermediate calculations. Round your answer to two decimal places. %
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.)

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