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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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ABC Corporation distributes property to its sole shareholder, Andre. The property has a fair market value of $350,000, an adjust
saul85 [17]

Answer:

ABC has a gain of $145,000 and Andre's dividend income is $130,000

Explanation:

Property ABC issued, has the following:

fair market value = $350,000

Adjusted basis = $205,000

Liability = $220,000

Calculate ABC's Corporation gain:

Gain = market value - Adjusted basis

= $350,000 - $205,000

= $145,000

ABC has a gain of $145,000

Calculate Andre's dividend income since he is the sole shareholder:

Dividend earnings = fair market value - liability

= $350,000 - $220,000

= $130,000

Andre's dividend income is $130,000

Correct option is D.

With respect to distribution, ABC has a gain of $145,000 and Andre's dividend income is $130,000

8 0
3 years ago
When labor unions successfully bargain for wage rates that are _____ the equilibrium wage rate, they may cause _____. higher tha
Delicious77 [7]

Answer:

When labor unions successfully bargain for wage rates that are HIGHER THAN the equilibrium wage rate, they may cause AN INCREASE IN STRUCTURAL UNEMPLOYMENT.

Explanation:

When a labor union bargains for wages that are above equilibrium rate, this will produce the same effect as a price floor. The supply of labor will increase, while the demand for labor will decrease. This deadweight loss generated by high wages will result in an excess supply that will eventually lead to higher structural unemployment.

3 0
2 years ago
On March 1, 2018, Gold Examiner receives $165,000 from a local bank and promises to deliver 100 units of certified 1-oz. gold ba
photoshop1234 [79]

Answer:

<u><em>there are two performance: </em></u>

the sales revenue and the insurance.

cash     165,000 debit

    unearned revenues   165,000 credit

--to record collectiong from local bank

unearned revenues  165,000 debit

    sales revenues                    151,000 credit

    insurance liability                  9,900  credit

--to record gold delivered to Brink's--

insurance liability   9,900 debit

      insurance fees earned       9,900 credit

--to record reception of bank from Brink/end of the insurance--

Explanation:

sales revenue

100 x 1,410 = 141,000 = 94%

insurance:

100 x 90 =       9,000 =   6%

   total         150,000

combo: 165,000

sales revenue:             165,000 x 94% = 155,100

insurance fee earned: 165,000 x 6% =      9,900

7 0
3 years ago
A blue ocean strategy differs from a low-cost strategy in that
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The focus of a blue ocean strategy is on lowering the economic value created, whereas a cost-leader focuses on increasing the economic value created.
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1 year ago
3m is a master of the __________ pricing strategy. according to a 3m manager, "we hit fast, price high, and get the heck out whe
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E


I hope this helps and have a wonderful day filled with joy!!


<3
5 0
3 years ago
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