The most recent financial statements for Mandy Company are shown below: Balance Sheet $ 34,000 Debt 94,400 Equity $ 128,400 Total Income Statement Sales Costs Taxable income Tax (25%) Net Income $ 93,600 Current assets 67,350 Fixed assets. $ 26,250 Total Sustainable growth rate 6,563 $ 19,687 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. $ 44,400 84,000 $ 128,400 15.22 %

The most recent financial statements for Mandy Company are shown below: Balance Sheet $ 34,000 Debt 94,400 Equity $ 128,400 Total Income Statement Sales Costs Taxable income Tax (25%) Net Income $ 93,600 Current assets 67,350 Fixed assets. $ 26,250 Total Sustainable growth rate 6,563 $ 19,687 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. $ 44,400 84,000 $ 128,400 15.22 %

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter16: Financial Statement Analysis

Section: Chapter Questions

Problem 4PB

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The most recent financial statements for Mandy Company are shown here: Income Statement Balance Sheet Sales $ 20,800 Current assets $ 12,080 Debt $ 16,840 Costs 14,320 Fixed assets 34,650 Equity 29,890 Taxable income $ 6,480 Total $ 46,730 Total $ 46,730 Taxes (25%) 1,620 Net income $ 4,860 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 sustainable growth rate? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
The most recent financial statements for Mandy Company are shown here: Balance Sheet $ 11,720 Debt 26,550 Equity Income Statement Sales Costs Taxable income Taxes (21%) Net income $ 19,000 Current assets 12,880 Fixed assets $ 6,120 Internal growth rate 1,285 $4,835 Total Answer is complete but not entirely correct. $ 38,270 16.23 X % Total 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.) $15,760 22,510 $38,270
The most recent financial statements for Bello Co. are shown here: Income Statement Balance Sheet Sales $ 18,900 Current assets $ 11,700 Debt $ 15,700 Costs 12,800 Fixed assets 26,500 Equity 22,500 Taxable income $ 6,100 Total $ 38,200 Total $ 38,200 Taxes (21%) 1,281 Net income $ 4,819 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?
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 Mc Govney Co. are shown here: Income Statement Sales Costs Taxable Income Taxes (34%) Net Income Current Asset Fixed Asset $46,911 $38,882 ? ? ? Balance Sheet $20,638 Long-term Debt Equity $88,120 $45,042 ? Assets and costs are proportional to sales. The company maintains a constant 19 percent dividend payout ratio and a constant debt-equity ratio. What is the maximum increase in sales (in $) that can be sustained assuming no new equity is issued?
The most recent financial statements for Mandy Company are shown here: Income Statement Balance Sheet Sales $ 19,200 Current assets $ 11,760 Debt $ 15,880 Costs 13,050 Fixed assets 27,450 Equity 23,330 Taxable income $ 6,150 Total $ 39,210 Total $ 39,210 Taxes (24%) 1,476 Net income $ 4,674 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.)
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 %
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The most recent financial statements for Mandy Company are shown here: Income Statement Sales Costs Taxable income Taxes (24%) Net income $19,200 13,050 $ 6,150 Internal growth rate 1,476 $4,674 Current assets Fixed assets Total Balance Sheet $ 11,760 27,450 $39,210 % 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 internal growth rate? (Do not round intermediate calculations and enter your answer as a percent rounded 2 decimal places, e.g., 32.16.) $15,880 23,330 $39,210
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 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?
The most recent financial statements for Mandy Company are shown here: Income Statement Sales Costs $19,000 12,880 Current assets Fixed assets Balance Sheet $ 11,720 Debt 26,550 Equity $ 15,760 22,510 Taxable income $ 6,120 Total $ 38,270 Total $ 38,270 Taxes (21%) 1,285 Net Income $ 4,835 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 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 %