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seropon [69]
3 years ago
10

What is the maximum increase in sales that can be sustained assuming no new equity is issued

Mathematics
1 answer:
larisa [96]3 years ago
5 0

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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The equivalent expression would be   S = F + 4

That being said:  An equivalent ratio to 4:1  would be  8:2 ,  12:3,  16:4, ...

Think of the ratio as a fraction.  4:1 = 4/1

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3 years ago
Jim drove 605 miles in 11 hours. At the same rate, how many miles would he drive in 13 hours?
svlad2 [7]

Answer: 715 Miles


Step-by-step explanation:

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3 years ago
The board of an internet start up company has sixteen members. if one person is in charge of research and one is in charge of ma
Brilliant_brown [7]

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The permutation is the way of choosing a set of objects from a larger set of objects in a specific sequence.

If we are choosing r number of objects, from n number of objects in a specific sequence, then we follow permutation, and it is given as:

nPr = n!{(n - r)!}.

In the question, we are asked to find the number of ways in which the position of one person in charge of research and one person in charge of marketing can be chosen from the board of 16 members.

Since the position is to be chosen in a specific order, we will follow permutation.

The number of positions to be chosen (r) = 2.

The number of members (n) = 16.

Thus, the number of ways is given as:

nPr = n!{(n - r)!},

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brainly.com/question/4658834

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6 0
2 years ago
What is 3/22 step by step?
Anna11 [10]

Answer:

Step-by-step explanation:

First you would see how many times 3 would go into 22 and it would be 7 with a remainder of 1. Then you would do 7 times 3 which is 21. And 22 minus 21 is 1. Then your answer would be 7 with a remainder of 1. If you don't want a remainder, and you want a decimal then you would add a decimal point after the 22 and then add a 0. You would bring down the zero and then  the remainder of one would be 10 then you would see how much 3 goes into 10, and it only goes 3 times. Your answer would be 7.3 with a remainder of 1, If you keep going you will see it becomes a repeating decimal. *Hope it helped*

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3 years ago
You are given the
r-ruslan [8.4K]

Answer:

1.→n=15

2.→n=0

Step-by-step explanation:

The two expressions given are

⇒A number is said to be rational if it can be expressed in the form of , where ,q≠0.And it's decimal expansion will be either terminating or non terminating repeating.

We have to find smallest value of n, for which each of these two expressions will be rational.

So, 1.→n=15

and 2.→n=0

Have a nice day! -Alpha

Step-by-step explanation: ;)

8 0
3 years ago
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