Question
In: Finance
Maggie's Muffins Bakery generated $4,000,000 in sales during 2016, and its year-end total assets were $3,000,000....
Maggie's Muffins Bakery generated $4,000,000 in sales during 2016, and its year-end total assets were $3,000,000. Also, at year-end 2016, current liabilities were $1,000,000, consisting of $300,000 of notes payable, $500,000 of accounts payable, and $200,000 of accruals. Looking ahead to 2017, the company estimates that its assets must increase at the same rate as sales, its spontaneous liabilities will increase at the same rate as sales, its profit margin will be 6%, and its payout ratio will be 65%. How large a sales increase can the company achieve without having to raise funds externally—that is, what is its self-supporting growth rate? Do not round intermediate calculations. Round your answers to the nearest whole.
Solutions
jeff jeffy answered 1 year agoRelated Solutions
Maggie's Muffins Bakery generated $2,000,000 in sales during 2016, and its year-end total assets were $1,500,000....
Maggie's Muffins
Bakery generated $2,000,000 in sales during 2016, and its year-end
total assets were $1,500,000. Also, at year-end 2016, current
liabilities were $1,000,000, consisting of $300,000 of notes
payable, $500,000 of accounts payable, and $200,000 of accruals.
Looking ahead to 2017, the company estimates that its assets must
increase at the same rate as sales, its spontaneous liabilities
will increase at the same rate as sales, its profit margin will be
5%, and its payout ratio will be 40%....
Sales Increase Maggie's Muffins Bakery generated $2,000,000 in sales during 2016, and its year-end total assets...
Sales Increase
Maggie's Muffins
Bakery generated $2,000,000 in sales during 2016, and its year-end
total assets were $1,400,000. Also, at year-end 2016, current
liabilities were $1,000,000, consisting of $300,000 of notes
payable, $500,000 of accounts payable, and $200,000 of accruals.
Looking ahead to 2017, the company estimates that its assets must
increase at the same rate as sales, its spontaneous liabilities
will increase at the same rate as sales, its profit margin will be
6%, and its payout ratio will...
Maggie's Muffins Bakery generated $4 million in sales during 2018, and its year-end total assets were...
Maggie's Muffins Bakery generated $4 million in sales during
2018, and its year-end total assets were $2.8 million. Also, at
year-end 2018, current liabilities were $1 million, consisting of
$300,000 of notes payable, $500,000 of accounts payable, and
$200,000 of accruals. Looking ahead to 2019, the company estimates
that its assets must increase at the same rate as sales, its
spontaneous liabilities will increase at the same rate as sales,
its profit margin will be 6%, and its payout ratio...
Maggie's Muffins Bakery generated $4 million in sales during 2018, and its year-end total assets were...
Maggie's Muffins Bakery generated $4 million in sales during
2018, and its year-end total assets were $2.4 million. Also, at
year-end 2018, current liabilities were $1 million, consisting of
$300,000 of notes payable, $500,000 of accounts payable, and
$200,000 of accruals. Looking ahead to 2019, the company estimates
that its assets must increase at the same rate as sales, its
spontaneous liabilities will increase at the same rate as sales,
its profit margin will be 5%, and its payout ratio...
Maggie's Muffins Bakery generated $4 million in sales during 2018, and its year-end total assets were...
Maggie's Muffins Bakery generated $4 million in sales during
2018, and its year-end total assets were $3 million. Also, at
year-end 2018, current liabilities were $1 million, consisting of
$300,000 of notes payable, $500,000 of accounts payable, and
$200,000 of accruals. Looking ahead to 2019, the company estimates
that its assets must increase at the same rate as sales, its
spontaneous liabilities will increase at the same rate as sales,
its profit margin will be 4%, and its payout ratio...
Problem 12-04 Sales Increase Maggie's Muffins Bakery generated $4,000,000 in sales during 2016, and its year-end...
Problem 12-04 Sales Increase Maggie's Muffins Bakery generated
$4,000,000 in sales during 2016, and its year-end total assets were
$2,600,000. Also, at year-end 2016, current liabilities were
$1,000,000, consisting of $300,000 of notes payable, $500,000 of
accounts payable, and $200,000 of accruals. Looking ahead to 2017,
the company estimates that its assets must increase at the same
rate as sales, its spontaneous liabilities will increase at the
same rate as sales, its profit margin will be 7%, and its payout...
Problem 12-04 Sales Increase Maggie's Muffins Bakery generated $4,000,000 in sales during 2016, and its year-end...
Problem 12-04 Sales Increase Maggie's Muffins Bakery generated
$4,000,000 in sales during 2016, and its year-end total assets were
$3,000,000. Also, at year-end 2016, current liabilities were
$1,000,000, consisting of $300,000 of notes payable, $500,000 of
accounts payable, and $200,000 of accruals. Looking ahead to 2017,
the company estimates that its assets must increase at the same
rate as sales, its spontaneous liabilities will increase at the
same rate as sales, its profit margin will be 3%, and its payout...
Problem 12-04 Sales Increase Maggie's Muffins Bakery generated $2,000,000 in sales during 2016, and its year-end...
Problem 12-04
Sales Increase
Maggie's Muffins Bakery generated $2,000,000 in sales during
2016, and its year-end total assets were $1,700,000. Also, at
year-end 2016, current liabilities were $1,000,000, consisting of
$300,000 of notes payable, $500,000 of accounts payable, and
$200,000 of accruals. Looking ahead to 2017, the company estimates
that its assets must increase at the same rate as sales, its
spontaneous liabilities will increase at the same rate as sales,
its profit margin will be 4%, and its payout...
Problem 9-4 Sales Increase Maggie's Muffins, Inc., generated $4,000,000 in sales during 2015, and its year-end...
Problem 9-4
Sales Increase
Maggie's Muffins, Inc., generated $4,000,000 in sales during
2015, and its year-end total assets were $2,200,000. Also, at
year-end 2015, current liabilities were $1,000,000, consisting of
$300,000 of notes payable, $500,000 of accounts payable, and
$200,000 of accruals. Looking ahead to 2016, the company estimates
that its assets must increase at the same rate as sales, its
spontaneous liabilities will increase at the same rate as sales,
its profit margin will be 4%, and its payout...
Paladin Furnishings generated $2 million in sales during 2016, and its year-end total assets were $1.3...
Paladin Furnishings generated $2 million in sales during 2016,
and its year-end total assets were $1.3 million. Also, at year-end
2016, current liabilities were $500,000, consisting of $200,000 of
notes payable, $200,000 of accounts payable, and $100,000 of
accrued liabilities. Looking ahead to 2017, the company estimates
that its assets must increase by $0.65 for every $1.00 increase in
sales. Paladin's profit margin is 7%, and its retention ratio is
55%. How large of a sales increase can the company...
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