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Semmy [17]
3 years ago
13

Orange & sons recently reported sales of $100 million, and net income equal to $5 million. the company has $70 million in to

tal assets. over the next year, the company is forecasting a 20 percent increase in sales. since the company is at full capacity, its assets must increase in proportion to sales. the company also estimates that if sales increase 20 percent, spontaneous liabilities will increase by $2 million. if the companys sales increase, its profit margin will remain at its current level. the companys dividend payout ratio is 50 percent. based on the afn formula, how much additional capital must the company raise in order to support the 20 percent increase in sales? select one:
a. $ 2.0 million
b. $ 3.0 million
c. $ 8.0 million
d. $ 9.0 million
e. $11.0 million
Business
1 answer:
anyanavicka [17]3 years ago
5 0
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2 years ago
Market segmentation refers to;
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3 years ago
larry Nelson holds 1,000 shares of General Electric (GE) common stock. As a stockholder, he has the right to be involved in the
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6 0
3 years ago
Exercise (2):
Rasek [7]

Answer:

 

                    Amount in $  

                                              Dr.          Cr.

Salaries Expense   1,300  

Salaries Payable       1,300

   

Salaries to be paid in august    

   

Bank             20,000  

Long term loan       20,000

   

Loan received from bank on a 10 year note    

   

Interest Expense   200  

Interest payable      200

   

Expense on loan for 10 years ( 20,000 *.12*1/12)    

   

Revenue           2,400  

Receivable             2,400

   

Unrecorded revenue    

Explanation:

1. Salaries are payable in august so a payable will be recorded for the amount. and  an expense will be booked for the month.

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3 0
3 years ago
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