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Mrac [35]
3 years ago
10

Antivirus Inc. expects its sales next year to be $2,500,000. Inventory and accounts receivable will increase $480,000 to accommo

date this sales level. The company has a steady profit margin of 15 percent with a 35 percent dividend payout. How much external financing will the firm have to seek? Assume there is no increase in liabilities other than that which will occur with the external financing.
Business
1 answer:
DiKsa [7]3 years ago
8 0

Answer:

$236,250

Explanation:

The computation of external financing is shown below:-

For computing the external financing first we need to find out the retained earning which is shown below:-

Net income = Sales × Profit margin

= $2,500,000 × 15%

= $375,000

Increase in retained earning = Net income - Dividends

= $375,000 - ($375,000 × 35%)

= $375,000 - $131,250

= $243,750

External financing = Increase in assets - Increase in retained earning

= $480,000 - $243,750

= $236,250

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Equipment with a book value of $84,000 and an original cost of $167,000 was sold at a loss of $34,000. Paid $109,000 cash for a
adoni [48]

Answer:

$443,400

Explanation:

The computation of cash flows from investing activities is shown below:-

For computing the cash flows from investing activities we need to find out first the Sale of equipment

= $84,000 - $34,000

= $50,000

Net cash paid by investing activities = Sale of equipment - Purchase of new truck + Sale of land + Sale of Long-term investments

= $50,000 - $109,000 + $410,000 + $94,200

= $443,400

3 0
3 years ago
Would you recommend that Apple raise or lower its price for the iWatch to increase​ revenue?
melisa1 [442]

I would recommend it lower its price.

Explanation:

iWatch is not a product a lot of people wish for and it doesn't compliment the life of users enough to be expensive to buy. When it is expensive sales will reduce which would make sales revenue reduce but if the price is low a lot of people will patronize the product thus increase revenue.

#learnwithbrainly

6 0
3 years ago
Whose name is associated with humanism
Svetradugi [14.3K]

Answer:

The major theorists considered to have prepared the ground for Humanistic Psychology are Otto Rank, Abraham Maslow, Carl Rogers and Rollo May. Maslow was heavily influenced by Kurt Goldstein during their years together at Brandeis University. Psychoanalytic writers also influenced humanistic psychology. i hope this helps

Explanation:

7 0
3 years ago
Which is not a way that government provides incentives for innovation
olga nikolaevna [1]
Ummm, Government does not fund nonprofits.
8 0
2 years ago
Read 2 more answers
On September 1, a client paid the company $25,200 cash for six months of rent in advance (the client leased a building and took
Tju [1.3M]

Answer:

Dr Unearned rent revenue 16,800

Cr Rent revenue 16,800

Explanation:

Period 6 months

Period expired at year end which is from September to December = 4 months

December 31

Dr Unearned rent revenue 16,800

(4/6×25,200)

Cr Rent revenue 16,800

Unearned Rent Revenue was debited in order to reduced Liability while Rent Revenue was credited in order to increase revenue.

4 0
3 years ago
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