Bundle: Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition 6-Month Printed Access Card), 8th + Aplia Printed Access Card
8th Edition
ISBN: 9781305132559
Author: Eugene F. Brigham, Joel F. Houston
Publisher: Cengage Learning
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Chapter 15, Problem 8Q
Summary Introduction
To define: The given terms and explain how they are related one another.
Loan:
A loan can be defined as a sum of money, property, or other goods that is given to another party in exchange for future repayment of the loan value amount including interest.
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General Finance Question
Consider the following simplified financial statements for the Yoo Corporation (assuming no income taxes):
Income Statement
Balance Sheet
Sales
Costs
$ 40,000 Assets
34,160
$26,000
Debt
Equity
$ 7,000
19,000
Net income $ 5,840
Total
$26,000
Total
$26,000
The company has predicted a sales increase of 20 percent. Assume Yoo pays out half of net income in the
form of a cash dividend. Costs and assets vary with sales, but debt and equity do not.
Prepare the pro forma statements. (Input all amounts as positive values. Do not round intermediate
calculations and round your answers to the nearest whole dollar amount.)
Pro forma income statement
Sales
Costs
$ 48000
40992
Assets
$ 31200
Pro forma balance sheet
Debt
7000
Equity
19000
Net income
$ 7008
Total
$ 31200
Total
30304
What is the external financing needed? (Do not round intermediate calculations. Negative amount
should be indicated by a minus sign.)
External financing needed
$
896
Chapter 15 Solutions
Bundle: Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition 6-Month Printed Access Card), 8th + Aplia Printed Access Card
Ch. 15 - What are some pros and cons of holding high levels...Ch. 15 - Prob. 2QCh. 15 - What are the two definitions of cash, and why do...Ch. 15 - Prob. 4QCh. 15 - What are the four key factors in a firms credit...Ch. 15 - Prob. 6QCh. 15 - Why is some trade credit called free while other...Ch. 15 - Prob. 8QCh. 15 - Prob. 9QCh. 15 - Indicate using a (+), (), or (0) whether each of...
Ch. 15 - Prob. 1PCh. 15 - RECEIVABLES INVESTMENT Lamar Lumber Company has...Ch. 15 - COST OF TRADE CREDIT AND BANK LOAN Lamar Lumber...Ch. 15 - CASH CONVERSION CYCLE Zocco Corporation has an...Ch. 15 - RECEIVABLES INVESTMENT McDowell Industries sells...Ch. 15 - WORKING CAPITAL INVESTMENT Prestopino Corporation...Ch. 15 - CASH CONVERSION CYCLE Christie Corporation is...Ch. 15 - CURRENT ASSETS INVESTMENT POLICY Rentz Corporation...Ch. 15 - LOCKBOX SYSTEM Hardin-Gchr Corporation (HGC) began...Ch. 15 - CASH BUDGETING Helen Bowers, owner of Helens...Ch. 15 - CASH BUDGETING Rework Problem 15-10 using a...Ch. 15 - Prob. 12IC
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