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hjlf
3 years ago
12

Find below the financial statements for Kenning Corp. Income Statement Balance Sheet Sales $5,000 Assets $14,800 Debt $11,000 Co

sts 3,410 Equity 3,800 Net income $1,590 Total $14,800 Total $14,800 Assume no income taxes. Assets and costs are proportional to sales. Debt and equity are not. No dividends are paid and next year's sales are projected to be $5,970. What is the EFN?
Business
1 answer:
steposvetlana [31]3 years ago
4 0

Answer: $972.74

Explanation:

From the information given, the external finance is calculated thus:

Sales growth = ($5970 - $5000) / $5000 × 100 = $970/$5000 × 100 = 19.4%

Then, we calculate the net income which will be:

= Sales - Cost

= $5970 - ($3410 × 1.194)

= $5970 - $4071.54

= $1898.46

Total asset = $14800 × 1.194 = $17671.20

Total equity = $3800 + $1898.46 = $5698.46

External financing needed:

= Total assets - Total equity - Debt

= $17671.20 - $5698.46 - $11,000

= $972.74

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A. Market Timing

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Based on the information provided within the question it can be said that the term being described within the question is called Market Timing. Like mentioned in the question this term refers to a strategy of buying and selling different financial assets, usually by trying to take advantage of price discrepancies in the short term.

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3 years ago
Sherman Peabody earns a monthly salary of ​$1,500​, which he receives at the beginning of each month. He spends the entire a
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Answer: A. maximizes the profits from money management.

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The optimal average level of money is indeed the amount that maximises profit from money management.

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With Mr Peabody's income and other financial constraints, the optimal average level of money will be the most he can maximise from managing his money.

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4 years ago
On her first day of work for ABC Company, Justine attended a full-day session with other new employees to learn about company po
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Answer:

Collective and serial

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3 years ago
Fill in the blanks: Stock prices fall if investors either expect _________ growth rates or require _________ returns.A. higher,
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Answer:

C. lower, higher

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Explanation:

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3 years ago
Read 2 more answers
Sue Gastineau borrowed $17,000 from Regions Bank at a rate of 5.5% to open her lingerie shop. The date of the loan was March 5.
dezoksy [38]

Sue will pay back $507.20 in interest expense.

Explanation:

The formula for calculating simple interest is:

SI = P x r x t ÷ 100

  • P = Principal
  • r = Rate of Interest
  • t = Term of the loan/deposit in years

In the given problem,

  • Sue Gastineau borrowed $17,000 from Regions Bank so, P = $17000
  • Sue Gastineau borrowed $17,000 from Regions Bank at a rate of 5.5%, so r = 5.5 %
  • Number of days of the loan = March 5 to September 19
  • Sue borrowed $17,000 from Regions Bank for the period of = 198 days, So t = 198 / 365

Simple Interest = (17000 * (5.5/100) * (198/365))

Simple Interest = (17000 * (0.055) * (0.5424657534246575‬))

Simple Interest = (17000 * (0.055) * (0.5424657534246575‬))

Simple Interest = $507.20

5 0
3 years ago
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