What is the maximum increase in sales that can be sustained assuming no new equity is issued
1 answer:
Answer:
Example 1 is 25%
Example 2 is 3.5%
Example 3 could be $10,464.41 See attached.
Step-by-step explanation:
Example 1
An increase of sales to $9,500 is an increase of:
Sales increase = ($9,500 - 7,600) / $7,600
Sales increase = .25, or 25%
Assuming costs and assets increase proportionally, the pro forma financial statements will look like this:
Pro forma income statement Pro forma balance sheet
Sales $ 9,500.00 Assets $ 23,875.00 Debt $ 7,000.00
Example 2.
Return on equity (ROE) is a measure of financial performance calculated by dividing net income by shareholders' equity. Because shareholders' equity is equal to a company’s assets minus its debt, ROE is considered the return on net assets. ROE is considered a gauge of a corporation's profitability and how efficient it is in generating profits.
Example below given on 2nd example is 60% payout ratio type question with constant debt equity ratio.
Return on equity 34008 / 90400 = 0.37619469
A / S = $ 34,008 / $ 90,400 = 37.6%
L / S = $ 9,040 / $ 90,400 = 10%
Change in Sales or ΔSales = $ a - $ 90.400 = $ b
EFN = (.376 x $ b) - (.10 x $ b ) - ((profit margin x $ a) x (1 - .dividend payout ratio))
Formula EFn = 0 = full subtraction of EFN
Example 3 - Calculation of the EFN:
Total Assets last year = $ 6.5 Million
Total Sales last year = $ 21.0 Million
Total Current Liabilities last year = $ 2.1 Million
Profit Margin = 4% of sales
Forecasted Sales = $ 24.5 Million
Dividend Payout Ratio or d = 60%
A / S = $ 6.5 / $ 21.0 = 31%
L / S = $ 2.1 / $ 21.0 = 10%
Change in Sales or ΔSales = $ 24.5 - $ 21.0 = $ 3.5
EFN = (.31 x $ 3.5) - (.10 x $ 3.5) - ((.04 x $ 24.5) x (1 - .60))
EFN = $ 1.085 - $ .35 - ($ .98 x .40)
EFN = $ .735 - $ .392
EFN = $ .343
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You can use any numbers for the Y you figure out you points. :)
Answer:
a) p + q + r
b) 2(a + b)
Step-by-step explanation:
The perimeter of a two-dimensional shape is the <u>distance</u> all the way around the outside.
An algebraic expression contains one or more numbers, variables, and arithmetic operations.
A variable is a symbol (usually a letter) that represents an unknown numerical value in an equation or expression.
<u>Question (a)</u>
The length of each side of the triangle is labeled p, q and r. Therefore, the perimeter is the sum of the sides:
Perimeter = p + q + r
So the algebraic expression for the perimeter of the triangle is:
p + q + r
<u>Question (b)</u>
Not all of the sides of the shape have been labeled.
However, note that the horizontal length labeled "a" is equal to the sum of "c" and the horizontal length with no label.
Similarly, note that the vertical length labeled "b" is equal to the sum of "d" and the vertical length with no label.
Therefore, the perimeter is twice the sum of a and b:
Perimeter = 2(a + b)
So the algebraic expression for the perimeter of the shape is:
2(a + b)
