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KATRIN_1 [288]
3 years ago
11

Tobin Supplies Company expects sales next year to be $500,000. Inventory and accounts receivable will "increase $80,000" to acco

mmodate this sales level. The company has a steady profit margin of 10 percent with a 20 percent dividend payout. How much external financing will Tobin Supplies Company have to seek
Business
1 answer:
wel3 years ago
7 0

Answer:

External funds needed = $40,000.

Explanation:

An increase in the firm's retained earnings (a component of the shareholder's equity) arises as a result of higher sales volume, thereby making the  Asset = Liability + Shareholder's Equity Equation unbalanced.

Therefore, there must be an increment in the firm's assets by an equal amount in order to re balance the equation. If there is an increase in assets by a greater magnitude than retained earnings increment, the gap is filled by external financing (which is a liability and increases the liability component of the equation).

Net income = Sales * profit margin = $500000*10% = $50000

Dividend= Net income * payout ratio = $50000*20%= $10000

Increase in retained earnings = Net income - Dividend = $(50000-10000)

                                                  = $40000

Increase in assets = $80000

External funds needed = $(80000-40000) = $40,000.

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mihalych1998 [28]

Answer:

$6 billion

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Calculation to determine what consumption spending would initially decrease by

Using this formula

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Let plug in the formula

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4 0
3 years ago
Prebankruptcy counseling includes all of the following except:
Anon25 [30]
My answer would probably be B!
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3 years ago
Tolton, Inc. is just shy of hitting its operating income target. The manager, K.T. Tolton, decides to purchase inferior material
mario62 [17]

Answer:

Net income increase - $4,890

Explanation:

The computation of the effect on net income is shown below:

= Number of pounds of inferior product × (standard price for the materials - inferior product price per pound)

= 3,000 pounds × ($13 - $11.37)

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6 0
3 years ago
Gekko, Inc. reported the following balances (after adjustment) at the end of 2008 and 2007.
nevsk [136]

Answer:

Correct answer is D, P3,900

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Therefore, in order for the company to have an ending inventory of P3,000, They must have set up a provision for doubtful accounts in the amount of P3,900. Attached herewith is the T-account of allowance for doubtful accounts

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As Accenture explores an end-to-end business flow that has reconciliation between multiple parties system, we would be able to uncover shared state.

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Multiparty  systems creates a shared data infrastructure between an individual and an organization that drives efficiency and creates a new business and revenue models. they include blockchain, distributed ledger, distributed database, tokenization and a variety of other technologies and capabilities.

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6 0
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