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-BARSIC- [3]
3 years ago
5

The firm is currently in the process of forecasting sales, asset requirements, and required funding for the coming year. In the

year that just ended, Fuzzy Button Clothing Company generated $300,000 net income on sales of $12,500,000. The firm expects sales to increase by 15% this coming year and also expects to maintain its long-run dividend payout ratio of 45%. Suppose Fuzzy Button’s assets are fully utilized. Using the additional funds needed (AFN) equation to determine the increase in total assets that is necessary to support a firm’s expected sales, it is projected that Fuzzy Button will require in additional assets. When a firm grows, some liabilities grow spontaneously along with sales. Spontaneous liabilities are a source of capital that the firm will generate internally, so they reduce the need for external capital. How much of the total increase in assets will be supplied by spontaneous liabilities for Fuzzy Button this year? $72,000 $54,000 $51,000 $60,000
Business
1 answer:
Phantasy [73]3 years ago
8 0

Answer: $60,000

Explanation:

Sales are expected to grow by 15% so current Liabilities will also have to increase by 15% in order to fund the increase in Assets.

Increase in Spontaneous liabilities = Increase in sales * Current Liabilities

= 15% * (Accounts Payable + Accrued Liabilities)

= 15% * (250,000 +150,000)

= $60,000

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During the elaboration stage of an organization: Group of answer choices change management is the most important skill that huma
Leno4ka [110]

Answer:

change management is the most important skill that human resource personnel contribute.

Explanation:

Elaboration stage of an organisation is also called the maturity stage. It is characterised by different units being involved in making decisions.

This slows down speed of decision making.

At this stage there is a need for revitalisation and change in order to make the organisation more efficient.

Change management is the process by which employees in an organisation are prepared and supported when there are far reaching improvements to organisation structure.

It ensures a smooth transition by providing needed information and reducing the stress associated with organisational change.

This is a key skill needed by human resource personnel fusing the elaboration stage

7 0
3 years ago
For the current year ($ in millions), Central Park Corp. had $80 in pretax accounting income. This included bad debt expense of
KatRina [158]

Answer:

$69

Explanation:

Calculation for Central Park's taxable income

Pretax accounting income $80

Less Temporary differenceDepreciation (15)

($35 – $20)

Bad debt expense $4

($6 – $2)

Taxable income$69

($80-$15+$4)

Therefore Central Park's taxable income will be $69

8 0
3 years ago
Chloe Closson paid for her vacation to the mountains with a $3,000 installment loan at 10% for 12 months. Her monthly payments w
erastova [34]
If Chloe did not pay off the loan, she will payout 263.75 x 12 = $3165.00 

However, if Chloe pays off the loan with the sixth payment, she will pay out (263.75 x 5) + 1,786.20 = $3,086.95.

But the question is how much will she save? To get the answer just follow this:  3165.00 - 3086.95 = $78.05 

Therefore, Chloe saves $78.05 
7 0
3 years ago
A woman is planning to retire in 30 years. She wishes to deposit a regular amount every three months until she retires, so that
IRINA_888 [86]

Answer:

The quarterly deposit required is $980.69

Explanation:

Giving the following information:

I will assume that the retirement age is 65 years.

First, we need to calculate the future value required one year after retirement.

FV= 40,000*20= $800,000

Number of years= 66 - 30= 36 years*4= 144

Interest rate= 0.08/4= 0.02

Now, to calculate the quarterly deposit required, we need to use the following formula:

FV= {A*[(1+i)^n-1]}/i

A= quarterly deposit

Isolating A:

A= (FV*i)/{[(1+i)^n]-1}

A= (800,000*0.02) / [(1.02^144)-1]

A= $980.69

7 0
4 years ago
Big Valley has a times interest earned ratio that is _________, which indicates that Big Valley has _________ long-term insolven
irina1246 [14]

Answer:

C. 3.91; more

Explanation:

the first part of the question is missing. It involved several aspects of Big Valley including its current and quick ratios, ROE and how they compare to the industry's average (they are generally lower than the industry's average).

This particular question refers to times interest earned ratio = EBIT / interest expense = 3.91, and how it compares to the industry's average (it is higher than the industry's average).

Since Big Valley performs poorly against the industry's average when comparing the other 3 metrics, but performs very well in the times interest ratio, it means that Big Valley has a low debt ratio. A low debt ratio results in lower financial leverage and lower interest expense.

5 0
3 years ago
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