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Owen’s Electronics has nine operating plants in seven southwestern states. Sales for last year were $100...
Owen’s Electronics has nine operating plants in seven southwestern states. Sales for last year were $100 million, and the balance sheet at year-end is similar in percentage of sales to that of previous years (and this will continue in the future). All assets (including fixed assets) and current liabilities will vary directly with sales. The firm is working at full capacity. Balance Sheet (in $ millions) Assets Liabilities and Stockholders' Equity Cash $ 9 Accounts payable $ 22 Accounts receivable 27 Accrued wages 9 Inventory 30 Accrued taxes 15 Current assets $ 66 Current liabilities $ 46 Fixed assets 47 Notes payable 17 Common stock 22 Retained earnings 28 Total assets $ 113 Total liabilities and stockholders' equity $ 113 Owen’s has an aftertax profit margin of 7 percent and a dividend payout ratio of 20 percent. If sales grow by 20 percent next year, determine how many dollars of new funds are needed to finance the growth. (Do not round intermediate calculations. Enter your answer in dollars, not millions, (e.g., $1,234,567).)
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jeff jeffy answered 1 year agoRelated Solutions
Owen’s Electronics has nine operating plants in seven southwestern states. Sales for last year were $100...
Owen’s Electronics has nine operating plants in seven
southwestern states. Sales for last year were $100 million, and the
balance sheet at year-end is similar in percentage of sales to that
of previous years (and this will continue in the future). All
assets (including fixed assets) and current liabilities will vary
directly with sales. The firm is working at full capacity.
Balance Sheet
(in $ millions)
Assets
Liabilities and Stockholders' Equity
Cash
$
6
Accounts payable
$
19
Accounts receivable...
Owen’s Electronics has nine operating plants in seven southwestern states. Sales for last year were $100...
Owen’s Electronics has nine operating plants in seven
southwestern states. Sales for last year were $100 million, and the
balance sheet at year-end is similar in percentage of sales to that
of previous years (and this will continue in the future). All
assets (including fixed assets) and current liabilities will vary
directly with sales. The firm is working at full capacity.
Balance Sheet
(in $ millions)
Assets
Liabilities and Stockholders' Equity
Cash
$
11
Accounts
payable
$
24
Accounts receivable...
Owen’s Electronics has nine operating plants in seven southwestern states. Sales for last year were $100...
Owen’s Electronics has nine operating plants in seven
southwestern states. Sales for last year were $100 million, and the
balance sheet at year-end is similar in percentage of sales to that
of previous years (and this will continue in the future). All
assets (including fixed assets) and current liabilities will vary
directly with sales. The firm is working at full capacity.
Balance Sheet
(in $ millions)
Assets
Liabilities and Stockholders' Equity
Cash
$
4
Accounts
payable
$
17
Accounts
receivable...
Owen’s Electronics has nine operating plants in seven southwestern states. Sales for last year were $100...
Owen’s Electronics has nine operating plants in seven
southwestern states. Sales for last year were $100 million, and the
balance sheet at year-end is similar in percentage of sales to that
of previous years (and this will continue in the future). All
assets (including fixed assets) and current liabilities will vary
directly with sales. The firm is working at full capacity.
Balance Sheet
(in $ millions)
Assets
Liabilities and Stockholders' Equity
Cash
$
10
Accounts payable
$
23
Accounts receivable...
Owen’s Electronics has nine operating plants in seven southwestern states. Sales for last year were $100...
Owen’s Electronics has nine operating plants in seven
southwestern states. Sales for last year were $100 million, and the
balance sheet at year-end is similar in percentage of sales to that
of previous years (and this will continue in the future). All
assets (including fixed assets) and current liabilities will vary
directly with sales. The firm is working at full capacity.
Balance Sheet
(in $ millions)
Assets
Liabilities and Stockholders' Equity
Cash
$
11
Accounts payable
$
23
Accounts receivable...
Ajax Corp's sales last year were $400,000, its operating costs were $362,500, and its interest charges...
Ajax Corp's sales last year were $400,000, its operating costs
were $362,500, and its interest charges were $12,500. What was the
firm's times-interest-earned (TIE) ratio?
a. 3.66
b. 2.46
c. 2.61
d. 3.48
e. 3.00
Jingo Company has reported $750,000 in sales (25,000 units) for last year with a net operating...
Jingo Company has reported $750,000 in sales (25,000 units)
for last year with a net operating income of $25,000. At the
break-even point, the company's total contribution margin equals
$500,000. Based on this information, which of the following is
correct? *
a-The contribution margin ratio is 40%.
b-The break-even point is 24,000 units.
c-The variable expenses are 60% of sales.
d-The variable expenses per unit are $9 per unit.
Hercules Ltd. sold $200,000 of lumber in the last year. They were operating at 94% of...
Hercules Ltd. sold $200,000 of lumber in the last year. They
were operating at 94% of fixed capacity and current sales are
$350,000, how fast can the company grow before any new fixed assets
are needed?
Last year a company had sales of $800,000, operating costs of 70%, and year-end assets of...
Last year a company had sales of $800,000, operating costs of
70%, and year-end assets of $1,500,000. The debt-to-total-assets
ratio was 20%, the interest rate on the debt was 10.00%, and the
tax rate was 21%. The new CFO wants to see how the ROE would have
been affected if the firm had used a 30% debt ratio. Assume that
sales and total assets would not be affected, and that the interest
rate and tax rate would both remain constant....
71. Last year Dania Corporation's sales were $525 million. If sales grow at 9.8% per year,...
71. Last year Dania Corporation's sales were $525 million. If
sales grow at 9.8% per year, how large (in millions) will they be 8
years later?
a. $1,142.39
b. $1,109.12
c. $1,364.22
d. $1,131.30
e. $842.93
72. How much would $1, growing at 13.7% per year, be worth after
75 years?
a. $18,248.03
b. $15,206.70
c. $15,358.76
d. $13,533.96
e. ...
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