Question
In: Finance
At year-end 2016, a company total assets were $1.8 million, and its accounts payable were $350,000....
At year-end 2016, a company total assets were $1.8 million, and its accounts payable were $350,000. Sales, which in 2016 were $2.8 million, are expected to increase by 30% in 2017. Total assets and accounts payable are proportional to sales, and that relationship will be maintained. Company typically uses no current liabilities other than accounts payable. Common stock amounted to $360,000 in 2016, and retained earnings were $260,000. Company has arranged to sell $120,000 of new common stock in 2017 to meet some of its financing needs. The remainder of its financing needs will be met by issuing new long-term debt at the end of 2017. Its net profit margin on sales is 8%, and 45% of earnings will be paid out as dividends. How much new long-term debt financing will be needed in 2017?
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jeff jeffy answered 2 years agoRelated Solutions
At year-end 2016, total assets for Arrington Inc. were $1.8 million and accounts payable were $335,000....
At year-end 2016, total assets for Arrington Inc. were $1.8
million and accounts payable were $335,000. Sales, which in 2016
were $2.2 million, are expected to increase by 20% in 2017. Total
assets and accounts payable are proportional to sales, and that
relationship will be maintained; that is, they will grow at the
same rate as sales. Arrington typically uses no current liabilities
other than accounts payable. Common stock amounted to $380,000 in
2016, and retained earnings were $225,000. Arrington...
At year-end 2016, total assets for Arrington Inc. were $1.8 million and accounts payable were $325,000....
At year-end 2016, total assets for Arrington Inc. were $1.8
million and accounts payable were $325,000. Sales, which in 2016
were $2.4 million, are expected to increase by 15% in 2017. Total
assets and accounts payable are proportional to sales, and that
relationship will be maintained; that is, they will grow at the
same rate as sales. Arrington typically uses no current liabilities
other than accounts payable. Common stock amounted to $445,000 in
2016, and retained earnings were $260,000. Arrington...
At year-end 2019, total assets for Arrington Inc. were $1.8 million and accounts payable were $425,000....
At year-end 2019, total assets for Arrington Inc. were $1.8
million and accounts payable were $425,000. Sales, which in 2019
were $2.90 million, are expected to increase by 30% in 2020. Total
assets and accounts payable are proportional to sales, and that
relationship will be maintained; that is, they will grow at the
same rate as sales. Arrington typically uses no current liabilities
other than accounts payable. Common stock amounted to $390,000 in
2019, and retained earnings were $445,000. Arrington...
At year-end 2016, Wallace Landscaping’s total assets were $1.9 million, and its accounts payable were $335,000....
At year-end 2016, Wallace Landscaping’s total assets were $1.9
million, and its accounts payable were $335,000. Sales, which in
2016 were $2.0 million, are expected to increase by 30% in 2017.
Total assets and accounts payable are proportional to sales, and
that relationship will be maintained. Wallace typically uses no
current liabilities other than accounts payable. Common stock
amounted to $470,000 in 2016, and retained earnings were $340,000.
Wallace has arranged to sell $80,000 of new common stock in 2017...
At year-end 2016, Wallace Landscaping’s total assets were $1.9 million, and its accounts payable were $335,000....
At year-end 2016, Wallace Landscaping’s total assets were $1.9
million, and its accounts payable were $335,000. Sales, which in
2016 were $2.0 million, are expected to increase by 30% in 2017.
Total assets and accounts payable are proportional to sales, and
that relationship will be maintained. Wallace typically uses no
current liabilities other than accounts payable. Common stock
amounted to $470,000 in 2016, and retained earnings were $340,000.
Wallace has arranged to sell $80,000 of new common stock in 2017...
At year-end 2016, Wallace Landscaping’s total assets were $1.9 million and its accounts payable were $390,000....
At year-end 2016, Wallace Landscaping’s total assets were $1.9
million and its accounts payable were $390,000. Sales, which in
2016 were $2.3 million, are expected to increase by 25% in 2017.
Total assets and accounts payable are proportional to sales, and
that relationship will be maintained. Wallace typically uses no
current liabilities other than accounts payable. Common stock
amounted to $380,000 in 2016, and retained earnings were $240,000.
Wallace has arranged to sell $100,000 of new common stock in 2017...
At year-end 2016, Wallace Landscaping’s total assets were $2.0 million, and its accounts payable were $345,000....
At year-end 2016, Wallace Landscaping’s total assets were $2.0
million, and its accounts payable were $345,000. Sales, which in
2016 were $2.2 million, are expected to increase by 20% in 2017.
Total assets and accounts payable are proportional to sales, and
that relationship will be maintained. Wallace typically uses no
current liabilities other than accounts payable. Common stock
amounted to $375,000 in 2016, and retained earnings were $240,000.
Wallace has arranged to sell $70,000 of new common stock in 2017...
At year-end 2016, Wallace Landscaping’s total assets were $1.5 million and its accounts payable were $395,000....
At year-end 2016, Wallace Landscaping’s total assets were $1.5
million and its accounts payable were $395,000. Sales, which in
2016 were $2.0 million, are expected to increase by 30% in 2017.
Total assets and accounts payable are proportional to sales, and
that relationship will be maintained. Wallace typically uses no
current liabilities other than accounts payable. Common stock
amounted to $420,000 in 2016, and retained earnings were $260,000.
Wallace has arranged to sell $160,000 of new common stock in 2017...
AA At year-end 2016, Wallace Landscaping's total assets were $2.0 million and its accounts payable were...
AA
At year-end 2016, Wallace Landscaping's total assets were $2.0
million and its accounts payable were $355,000. Sales, which in
2016 were $2.4 million, are expected to increase by 20% in 2017.
Total
assets and accounts payable are proportional to sales, and that
relationship will be maintained. Wallace typically uses no current
liabilities other than accounts payable. Common stock amounted
to
$485,000 in 2016, and retained earnings were $260,000. Wallace has
arranged to sell $100,000 of new common stock in...
At year-end 2016, Wallace Landscaping’s total assets were $1.5 million, and its accounts payable were $360,000....
At year-end 2016, Wallace Landscaping’s total assets were $1.5
million, and its accounts payable were $360,000. Sales, which in
2016 were $2.5 million, are expected to increase by 30% in 2017.
Total assets and accounts payable are proportional to sales, and
that relationship will be maintained. Wallace typically uses no
current liabilities other than accounts payable. Common stock
amounted to $440,000 in 2016, and retained earnings were $340,000.
Wallace has arranged to sell $145,000 of new common stock in 2017...
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