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Ganezh [65]
3 years ago
14

The most recent financial statements for Reply, Inc., are shown here: Income Statement Balance Sheet Sales $ 23,600 Assets $ 54,

300 Debt $ 20,300 Costs 14,600 Equity 34,000 Taxable income $ 9,000 Total $ 54,300 Total $ 54,300 Taxes (40%) 3,600 Net income $ 5,400 Assets and costs are proportional to sales. Debt and equity are not. A dividend of $2,500 was paid, and the company wishes to maintain a constant payout ratio. Next year’s sales are projected to be $26,904. What is the external financing needed? (Do not round intermediate calculations.)
Business
1 answer:
Anika [276]3 years ago
7 0

Answer:

external financing needed  $4,296

Explanation:

Sales                   26,904

Cost                      16,644

(14.600 / 23,600 x 26,904)

Taxable Income   10,206

Tax Income (40%)<u>  4,104</u>

Net Income            6,156

Dividends: (same payout ratio is maintaned)

 2,500 / 5,400 x 6,156 = 2,850

Assets: (proportional to sales)

54,300 / 23,600 x 26,904 =   61902

Equity:

34,000 + 6,156 net income - 2,850 dividends = 37306

Liabilities: 61,902 - 37,306 =  24,596

Previous liaiblities  20,300

Addional debt taken: 24,596 - 20,300 = 4296

                             

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(P.S. - in the future you will get better help when you add the possible answer choices!)

The law of supply states that, all other things equal/consistent) an increase in price will result in an increase in supply.

This is because as the price of a product goes up and up, more and more companies will be willing to sell it. The inverse is also true.. as the price goes down, fewer companies will bother selling the item.

5 0
3 years ago
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You know that firm XYZ is very poorly run. On a scale of 1 (worst) to 10 (best), you would give it a score of 3. The market cons
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<u>Full question:</u>

You know that firm XYZ is very poorly run. On a scale of 1 (worst) to 10 (best), you would give it a score of 3. The market consensus evaluation is that the management score is only 2. Should you buy or sell the stock?

A. Buy

B. Sell

<u>Answer:</u>

Buy  the stock

<u>Explanation:</u>

At any position in time, the stock price displays all candidly accessible erudition about the company. This implies that an investor can obtain abnormal returns only if that investor holds private erudition about the firm's forecasts.

The firm's administration is not as critical as everyone else considers it to be, hence, the firm is underestimated by the market. You are scarcely hopeless about the firm's probabilities than the assumptions constructed into the stock price. As the administration of the firm is not as weak as anticipated to be. So the investor will determine to buy the stocks of the firm.

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3 years ago
The June 1 work in process inventory consisted of 5,000 units with $16,000 in materials cost and $12,000 in conversion cost. The
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Answer:

Total cost added including beginning inventory

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Overheads = $180,960

Total = $316,960

Explanation:

As provided the opening Work in process units = 5,000 units

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Closing work in process = 8,000 units

That means units produced = opening + additions - closing

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Provided cost of beginning inventory = $16,000 for raw material and $12,000 for overheads

Also it is 100% complete for raw material and 50% complete for overheads

That means raw material per unit = $16,000/5,000 = $3.20

And the overheads 100% = $12,000 \times 2 = $24,000

Overhead per unit = $24,000/5,000 = $4.80

Therefore, cost added during the period

Shall be

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Overheads = for 34,500 units 100% and remaining 8,000 = 40%

= 34,500 \times $4.80 + 8,000 \times $4.80 \times 40%

= $165,600 + $15,360

= $180,960

Total = $316,960

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Answer:

The correct statement lies in option C.

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