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3 years ago

The most recent financial statements for Cardinal, Inc., are shown here:

Business

1 answer:

Lina20 [59]3 years ago

7 0

Answer:

$33,137

Explanation:

The computation of the external financing need is shown below:

But before that the following calculations need to be required:

Projected assets = Projected sales × Assets ÷ Sales ratio

= $29,400 × $108,000 ÷ $22,100

= $143,674

Projected cost = Projected sales × cost ÷ sales ratio

= $29,400 × $17,400 ÷ $22,100

= $23,147

The projected net income = (Projected sales - projected cost) × ( 1 - tax rate)

= ($29,400 - $23,147) × (1 - 0.21)

= $4,315

The current dividend payout ratio = Dividend ÷ Net income

= $1,530 ÷ $3,713

= 41.21%

The projected dividend = Projected net income × dividend payout ratio

= $4,315 × 41.21%

= $1,778

Projected equity = Equity + projected net income - projected dividend

= $65,400 + $4,315 - $1,778

= $67,937

Projected debt = Projected assets - projected equity

= $143,674 - $67,937

= $75,737

Now the external financing debt is

= Projected debt - debt

= $75,737 - $42,600

= $33,137

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Answer:

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Dr Service revenue 6,400

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to record service revenue for the fifth month:

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3 years ago

Accrued salaries payable of $100000 were not recorded on December 31, 2017. Office supplies on hand of $57000 on December 31, 20

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Answer:

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Cr. Salaries Payament

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Answer:

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