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Bezzdna [24]
3 years ago
8

he Steel Mill is currently operating at 84 percent of capacity. Annual sales are $28,400 and net income is $2,250. The firm has

current liabilities of $2,700, long-term debt of $9,800, net fixed assets of $16,900, net working capital of $5,000, and owners' equity of $12,100. All costs and net working capital vary directly with sales. The tax rate and profit margin will remain constant. The dividend payout ratio is constant at 40 percent. How much additional debt is required if no new equity is raised and sales are projected to increase by 12 percent?
Business
1 answer:
nignag [31]3 years ago
8 0

Answer:

-911.51 the debt will decrease if sales increase 12%

Explanation:

sales: 28,400

increase of 12%

new sales:  31,808

<em><u>profirt margin:</u></em>

2,250/28,400 = 0.0792 = 7.92%

income: 31,808 x 7.92% = 2,519.19

retained earnigns grow: (1-payout ratio) = 0.6

2,519.19 x 60% =  1,511.514‬

Increase in working capital: 5,000 x 12% = 600

Asset requirement - reteined earnigns grow = financial needs

600 - 1,511.51 = -911.51

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C. negotiation

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According to this, the skill that Monica has is negotiation.

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2 years ago
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2 years ago
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Effie plans to save $100 every six months for the next 5 years. If her account earns 14 percent, compounded semi-annually, how m
lina2011 [118]

Answer:

$1,381.64

Explanation:

For this question, we determine the Future value. By applying the future value formula that is shown on the spreadsheet. Kindly find it below:

Data provided

Future value = $0

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NPER = 5 years ××2 = 10 years

PMT = $100

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6 0
2 years ago
Which of the following would be an example of mechanical convection?
sdas [7]

Hi!


Option A is correct.


In cooking, convection is the phenomena that causes molecules with a higher energy at the bottom of a container to travel upwards, and the molecules at the top with a lower energy to sink to the bottom and replace them.

Mechanical convection describes this phenomena as a result of the application of an external force.

This phenomena is restricted to substances that are in liquid, or gaseous state, as molecules of a substance in solid state have a very restricted movement.

Hence, options B, C and D are incorrect.


Hope this helps!



3 0
2 years ago
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