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
-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

You might be interested in
(1) : (2) : (3)DI - C : DI - C : DI - C$0 - $4 : $0 - $65 : $0 - $210 - 11 : 80 - 125 : 20 - 2020 - 18 : 160 - 185 : 40 - 3830 -
vekshin1

Answer: B

The marginal propensity to save will remain unchanged in each of the countries.

Explanation:

Marginal propensity to consume (MPC) is the percentage of increase or decrease in income that goes to consumption

Marginal propensity to save (MPS) is the percentage of increase or decrease in income that goes into savings. It can also be expressed as:

1 - MPC

Average propensity to save measures the level of saving at a given level of income.

The marginal propensity to save measures changes in savings relative to changes in income but the income remains unchanged here, the MPS also remains unchanged.

3 0
3 years ago
Excerpts from Neuwirth Corporation's comparative balance sheet appear below: Ending Balance Beginning Balance Cash and cash equi
Artemon [7]

Answer:

The change in Accounts Receivable is added to net income; The change in Inventory is added to net income.

Explanation:

Account receivable:

= Ending balance - Beginning balance

= 24,000 - 28,000

= -4,000

Decrease in account receivable

Inventory:

= Ending balance - Beginning balance

= 65,000 - 68,000

= -3,000

Decrease in inventory

Since the Current assets have decreased therefore they should be added to net income.

The change in Accounts Receivable is added to net income; The change in Inventory is added to net income.

Note: The options are missing from the question, so i have attached the options with the answer.

3 0
3 years ago
The West European buyers who purchase and resell Entrée Specialités’ food products in their home countries are in the _____ busi
defon

Answer:

The correct answer is letter "A": importing.

Explanation:

Importing activities involve businesses or individuals purchasing goods from manufacturers abroad with the purpose of reselling those goods or for personal use. Importing goods imply paying tariffs on those products as a way to protect national businesses.

5 0
3 years ago
Assume an annual interest rate of 8%. You have $1. What is the value of the $1 one year in the future
seropon [69]

Answer:

the future value is $1.08

Explanation:

The computation of the future value is shown below:

As we know that

Future value = Present value × (1 + rate of interest)^number of years

= $1 × (1 + 0.08)^1

= $1 × 1.08

= $1.08

Hence, the future value is $1.08

3 0
2 years ago
Give an example of how businesses use demographic information ECONOMICS
trapecia [35]

Businesses often segment the market based on key demographics such as age, gender, income level or marital status, but they also use more precisely defined categories to target specific groups.

3 0
3 years ago
Other questions:
  • A consulting firm submitted a bid for a large research project. The firm's management initially felt that they had a 50-50 chanc
    7·1 answer
  • For which of the following options can you sign a contract with a one-day duration
    6·2 answers
  • "If a company has the optimal amount of debt, then the:
    10·1 answer
  • Stockholders' Equity Section of Balance SheetThe following accounts and their balances appear in the ledger of Goodale Propertie
    9·1 answer
  • The following transactions occur for the Panther Detective Agency during the month of July:
    12·1 answer
  • The _____ section of a business plan should include ownership details.
    15·1 answer
  • Alfred, the director of a large company producing construction materials, is linked through a professional network to several ma
    8·1 answer
  • The records of the Dodge Corporation show the following results for the most recent year:
    14·1 answer
  • During August, the receipts and distributions of Material No. B4G9 are as follows: Received Aug. 31,100 units at $15 161,700 uni
    14·1 answer
  • You are reviewing your checking account balance of $800 after you've just sent in your rent check of $500. How much money is ava
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!