Major Manuscripts, Inc., is currently operating at 70 percent of capacity. All costs and net working capital vary directly with
sales. The tax rate, the profit margin, and the dividend payout ratio will remain constant. How much additional debt is required if no new equity is raised and sales are projected to increase by 10 percent
1 answer:
The attached data is required to answer the question
Answer:
$535
Explanation:
In this scenario we need to calculate the additional debt required by Major Manuscript
We expect an increase of 10% of sales
Therefore
Total assets projected = 9,420 * 1.10 = $10,362
Accounts payable projected = 2,200 * 1.10 = $2,420
Current long term debt = $260
Current common stock = $2,400
Retained earnings projected = 4,560 +{(360 - 190) * 1.10} = $4,747
Additional debt required = 10,362 - 2,420 - 260 - 2,400 - 4,747
Additional debt required = $535
You might be interested in
Answer:
The answer is "The first choice".
Explanation:
Please find the graph file of the given question:
In the given question the first choice is correct because in the graph it has 3 dots, which denotes the (tv's) in 2 that is equal to the two houses.
