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Strike441 [17]
3 years ago
11

Owens Corning has total assets of $800,000, long-term debt of $240,000, stockholders' equity of $350,000, and current liabilitie

s of $210,000. The dividend payout ratio is 30 percent and the profit margin is 8 percent. Assume all assets and current liabilities change spontaneously with sales and the firm is currently operating at full capacity. What is the external financing need (EFN) if the current sales of $1,000,000 are projected to increase by 20 percent
Business
1 answer:
Artyom0805 [142]3 years ago
5 0

Answer:

$50,800

Explanation:

Increase in assets = Current Assets * Percentage change in sales = $800,000 * 20% = $160,000

Increase in current liabilities = Current liabilities * Percentage change in sales = $210,000 * 20% = $42,000

Increase in retaned earning = Increased sales*Profit Margin*Retention ratio = $1,000,000*120%*8%*(1-0.30) = $67,200

External financing need = Increase in Assets - Increase in liabilities - Increase in retained earning

External financing need = $160,000 - $42,000 - $67,200

External financing need = $50,800

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Answer:

Requirement: Prepare the entry to record the sales transactions and related taxes.

1.   Date      Account Titles and Explanation     Debit     Credit

   Apr. 10   Cash                                                 $30,975

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                        Sales Tax Payable                                     $1,475

                 (To record Cash sales along with sales tax)

2. Date      Account Titles and Explanation    Debit     Credit

   Apr. 15   Cash                                                 $18,530

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                  (To record Cash sales along with sales tax)

<u></u>

<u>Workings</u>

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7 0
3 years ago
Before it can be used, a 12-ounce container of liquid fertilizer must be mixed with 96 ounces of water. What fraction of fertili
VashaNatasha [74]

The fraction of fertilizer in the final mixture is 1/9.

A natural or synthetic material called fertilizer that contains chemical ingredients that help plants grow and produce more. Fertilizers may restore chemical elements that previous crops removed from the soil or increase the land's inherent fertility.

Most of the time, fertilizers' contribution to food production is overlooked. For plants, fertilizers are food. The nutrients that crops remove from the soil and replace with fertilizers. Crop yields and agricultural output would be much lower without the addition of fertilizers.

12 oz fertilizer to 96 oz water will make 12+96 = 108 oz of liquid

=12/108

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1/9 is the fraction of fertilizer in the final mixture.

To know more about fertilizer refer to:  brainly.com/question/14012927

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Answer:inventory

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The above statement is true.

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