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Natalka [10]
3 years ago
5

The most recent financial statements for Assouad, Inc., are shown here: Income Statement Balance Sheet Sales $3,900 Current asse

ts $4,700 Current liabilities $860 Costs 1,900 Fixed assets 4,700 Long-term debt 3,610 Taxable income $2,000 Equity 4,930 Taxes (22%) 440 Total $9,400 Total $9,400 Net income $1,560 Assets, costs, and current liabilities are proportional to sales. Long-term debt and equity are not. The company maintains a constant 50 percent dividend payout ratio. As with every other firm in its industry, next year's sales are projected to increase by exactly 20 percent. What is the external financing needed?
Business
1 answer:
Ratling [72]3 years ago
7 0

Answer:

$2,896 is needed

Explanation:

external financing needed = net income - working capital needs - capital expenditures + retained earnings

  • net income = $1,560 x 1.2 = $1,872
  • working capital needs = ($4,700 x 1.2) - ($860 x 1.2) = $5,640 - $1,032 = $4,608
  • capital expenditures = fixed assets x 20% = $940
  • retained earnings = $1,560 x 50% = $780

external financing needed = $1,872 - $4,608 - $940 + $780 = -$2,896

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Answer:

[b] = $ 2500

[c] = $ 7500

[d] =  Gross margin = 22500 – 15000 = $ 7500

   Net Income = 7500 – 4000 = $ 3500

[e] = $ 3500

Explanation:

Here the solution is given as follows,

3 0
3 years ago
In economic terms, the long-run monetary benefits of doing business in a country are based on the size of the market, the presen
Nana76 [90]

Gross domestic product is one of the factor that aid the long run monetary benefit in business.

<h3>What is Gross domestic product?</h3>

Gross domestic product refer to the the overall monetary or market value of all thecompleted goods and services that is manufactured within a specific country at a period of time.

It is the overall measure of overall domestic production, it help the to know if the country is okay or not.

It help to estimate the size of the economy.

To calculate, GDP

GDP = Consumption + investment+ government spending + net worth.

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3 0
2 years ago
A The following section is taken from Blossom's balance sheet at December 31, 2021.
loris [4]

Answer:

Date    Account titles and explanation          Debit       Credit

1-1-21    Bond interest payable                       $46,000

                  Cash                                                               $46,000

            (To record payment of interest)

1-1-21    Bond payable                                    $155,000

            Loss on redemption bond                $15,500

            (155,000/100*10)

                    Cash                                                              $170,500

            (To record bond redemption)

31-1-21   Interest expenses                              $36,450

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6 0
3 years ago
High SchoolBusiness7 days ago Canada has a market economy. As such, Canada's economy (relative to centrally planned economies) t
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Answer:

D) productive efficiency and allocative efficiency but not necessarily equity.

Explanation:

Countries that have a market economy are capitalistic countries and those that favor command economies (centrally planned) are called socialist countries. No country is totally capitalistic (since governments, taxes, regulations, etc., exist), and no country is totally socialist either. But countries are classified depending on which economic system they favor.

Canada favors free markets, and by doing so, it allows market forces to allocate resources. Consumers are free to decide what to buy and at what price, and producers are free to decide what to sell and at what price. Since private actors are free to decide how to allocate resources, they are allocated more efficiently.

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7 0
3 years ago
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Answer:

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7 0
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