1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Diano4ka-milaya [45]
3 years ago
9

LM Products has total assets of $48,900, total debt of $21,750, long-term debt of $18,100, owners' equity of $27,150, dividends

paid of $1,925, and net income of $5,500. Assume net working capital and all company costs increase directly with sales. Also assume the tax rate and the dividend payout ratio are constant and the company is currently operating at full capacity.
a. What is the external financing need if sales increase by 4 percent?
Business
1 answer:
kondaur [170]3 years ago
7 0

Answer:

-$1,908

Explanation:

Current liabilities:

= Total debt - Long term debt

= $21,750 - $18,100

= $3,650

Retained earnings:

= Net income - Dividend

= $5,500 - $1,925

= $3,575

Increase in assets:

= Total assets × Percentage increase in sales

= $48,900 × 4%

= $1,956

Increase in liabilities:

= Current liabilities × Percentage increase in sales

= $3,650 × 4%

= $146

Increase in retained earnings:

= Retained earnings × (1 + 4%)

= $3,575 × 1.04

= $3,718

Therefore,

External financing need:

= Increase in assets - Increase in liabilities - Increase in retained earnings

= $1,956 - $146 - $3,718

= -$1,908

You might be interested in
Oklahoma County issued a request for proposal (RFP) to paint all the offices in the buildings located in District 3. The RFP sti
Greeley [361]

This requirement is an example of an order qualifier

<u>Explanation:</u>

Order qualifiers are the competing interests that a firm must prove to be a feasible opponent in the market field. An order qualifier is a quality of goods or assistance that is wanted for the goods/assistance to indeed be viewed by a client.

Order qualifiers are the ambitious criteria that create a firm's outcomes observed as access for marketing by purchasers. For a firm to remit order qualifiers, they have to be at least as great as their opponent. When a firm's thought of order winners and qualifiers rivals the customer's opinion of the equivalent, there endures a "fit" among the pair of panoramas.

Here only contractors that were licensed and bonded would be considered shows that the client is interest to a quality of assistance is wanted to paint.

8 0
3 years ago
With what kind of vocabulary should a person be familiar for reading the balance sheet of a restaurant easily?
mote1985 [20]

Answer:

Explanation:

For all Plato users.

7 0
3 years ago
The country of Trevanvia goes through a period of recession, which leaves a large number of people unemployed due to extensive l
alexira [117]

Answer:

Trough

Explanation:

Trough economic situation is when the recession is hardest and comes after the phase of contraction where growth slows, employment declines (unemployment increases), and pricing pressures subside.

Trough is characterized by large number of people being unemployed due to extensive layoffs by companies in order to cut down their costs and reduce their output during the period of economic decline

7 0
3 years ago
Which statement is most accurate about the hourly pay a worker receives?
NNADVOKAT [17]

Answer:

A. It is the rate for each day that is worked.

8 0
3 years ago
Read 2 more answers
Juan works for you in the Customer Service Department. He hates answering incoming customer calls and prefers to respond to cust
myrzilka [38]

Answer:

Accommodating Style

Explanation:

It is correct to say that the style of accommodation was chosen to deal with the conflict exposed in the question above. This style understands that a party agrees to meet a person's needs for the sake of the relationship.

Accommodation in conflict resolution can be effective when the final result will not be as impacted by what you want to accept, as in the case of the question, since the change in the roles of Juan and Shawna will not affect the final result.

5 0
3 years ago
Other questions:
  • When setting your schedule, it is sometimes necessary to tell people "No." Please select the best answer from the choices provid
    10·2 answers
  • On january 2, fafnir co. purchased a franchise with a finite useful life of 10 years for $50,000. an additional franchise fee of
    9·1 answer
  • Robin, a senior at State University, receives free room and board as full compensation for working as a resident advisor at the
    9·1 answer
  • If equilibrium exists:
    14·1 answer
  • A conversion feature allows
    6·1 answer
  • A case comes before a Wisconsin state trial court on the subject of free speech on the Internet. It is a case of first impressio
    10·1 answer
  • Identify the five major column headings on a work sheet
    6·1 answer
  • Each quarter, Carla Vista, Inc., pays a dividend on its perpetual preferred stock. Today the stock is selling at $64.00. If the
    11·1 answer
  • On January 2 Kelly company performed $800 worth of services for a client. The client paid $100 immediately, but promised to pay
    6·2 answers
  • A restaurant manager reads a study on the health habits of the local community. However, he wants to validate this information w
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!