Suppose that Gyp Sum Industries currently has the balance sheet shown below, and that sales for the year just ended were $10.9 million. The firm also has a profit margin of 25 percent, a retention ratio of 30 percent, and expects sales of $8.9 million next year.
Assets | Liabilities and Equity | ||||||
Current assets | $ | 2,621,000 | Current liabilities | $ | 2,557,140 | ||
Fixed assets | 4,900,000 | Long-term debt | 1,950,000 | ||||
Equity | 3,013,860 | ||||||
Total assets | $ | 7,521,000 | Total liabilities and equity | $ | 7,521,000 | ||
If all assets and current liabilities are expected to shrink with sales, what amount of additional funds will Gyp Sum need from external sources to fund the expected growth? (Enter your answer in dollars not in millions. Negative amount should be indicated by a minus sign.)
Current assets 2621000*(1-18.35%) | 2,140,082.57 | |
Fixed assets | 4,900,000.00 | |
Total assets | 7,040,082.57 | |
less | ||
Current liabilities 2557140*(1-18.35%) | 2,087,904.81 | |
Long-term debt | 1,950,000.00 | |
Equity 3013860+667500 | 3,681,360.00 | 7719264.81 |
External sources to fund | -679,182.24 |
Suppose that Gyp Sum Industries currently has the balance sheet shown below, and that sales for...
Suppose that Gyp Sum Industries currently has the balance sheet shown below, and that sales for the year just ended were $10.9 million. The firm also has a profit margin of 25 percent, a retention ratio of 30 percent, and expects sales of $8.9 million next year. Assets Liabilities and Equity Current assets $ 2,621,000 Current liabilities $ 2,557,140 Fixed assets 4,900,000 Long-term debt 1,950,000 Equity 3,013,860 Total assets $ 7,521,000 Total liabilities and equity $ 7,521,000 If all assets...
Suppose that Gyp Sum Industries currently has the balance sheet shown below, and that sales for the year just ended were $10.3 million. The firm also has a profit margin of 25 percent, a retention ratio of 30 percent, and expects sales of $8.3 million next year. Assets Liabilities and Equity $2,189,000 Current liabilities Current assets Fixed assets $1,816,920 1,650,000 3,022,080 $6,489, 000 4,300,000 Long-term debt Equity Total assets $6,489,000 Total liabilities and equity If all assets and current liabilities...
Suppose that Gyp Sum Industries currently has the balance sheet shown below, and that sales for the year just ended were $9.5 million. The firm also has a profit margin of 25 percent, a retention ratio of 30 percent, and expects sales of $7.5 million next year Liabilities and Equity Assets Current assets Fixed assets $ 725,000 Current 1iabilities $1,045,000 4,500,000 Long-term debt 1,750,000 2,430,000 Total liabilities $5,225,000 Equity Total assets $5,225,0o0 and equity If all assets and current liabilities...
Suppose that Wind Em Corp. currently has the balance sheet shown below, and that sales for the year just ended were $6.4 million. The firm also has a profit margin of 20 percent, a retention ratio of 25 percent, and expects sales of $7.4 million next year. Assets Liabilities and Equity Current assets $ 1,616,000 Current liabilities $ 1,804,800 Fixed assets 4,400,000 Long-term debt 1,800,000 Equity 2,411,200 Total assets $ 6,016,000 Total liabilities and equity $ 6,016,000 If all assets...
Suppose that Wind Em Corp. currently has the balance sheet shown below, and that sales for the year just ended were $7.8 million. The firm also has a profit margin of 30 percent, a retention ratio of 15 percent, and expects sales of $8.8 million next year. Assets Liabilities and Equity Current assets $ 2,624,000 Current liabilities $ 3,622,320 Fixed assets 5,800,000 Long-term debt 1,900,000 Equity 2,901,680 Total assets $ 8,424,000 Total liabilities and equity $ 8,424,000 If all assets...
Suppose that Wind Em Corp. currently has the balance sheet shown below, and that sales for the year just ended were $7.4 million. The firm also has a profit margin of 20 percent, a retention ratio of 25 percent, and expects sales of $8.4 million next year. Assets Liabilities and Equity Current assets $ 2,296,000 Current liabilities $ 3,001,440 Fixed assets 5,400,000 Long-term debt 1,700,000 Equity 2,994,560 Total assets $ 7,696,000 Total liabilities and equity $ 7,696,000 If all assets...
Question 4 (Mandatory) (1.5 points) Suppose that BBM Industries, Inc. currently has the balance sheet shown as follows. and that sales for the year just ended were $2 million. The firm also has a profit margin of 5 percent, a retention ratio of 50 percent, and expects sales of $2.5 million next year. If all assets and current liabilities are expected to increase with sales, what amount of additional funds will the company need from external sources to fund the...
2. The Additional Funds Needed (AFN) equation Green Moose Industries has the following end-of-year balance sheet: Green Moose Industries Balance Sheet For the Year Ended on December 31 Assets Liabilities Current Assets: Current Liabilities: Accounts payable $250,000 Cash and equivalents Accounts receivable Accrued liabilities 150,000 $150,000 400,000 350,000 $900,000 Inventories Notes payable Total Current Liabilities Long-Term Bonds Total Debt 100,000 $500,000 1,000,000 Total Current Assets Net Fixed Assets: Net plant and equipment (cost minus depreciation) $2,100,000 $1,500,000 Common Equity Common...
The 2021 balance sheet for Hallbrook Industries, Inc., is shown
below.
HALLBROOK INDUSTRIES, INC.
Balance Sheet
December 31, 2021
($ in thousands)
Assets
Cash
$
290
Short-term investments
240
Accounts receivable
290
Inventory
380
Property, plant, and equipment (net)
1,900
Total assets
$
3,100
Liabilities and Shareholders’
Equity
Current liabilities
$
490
Long-term liabilities
440
Paid-in capital
1,200
Retained earnings
970
Total liabilities and shareholders’ equity
$
3,100
The company’s 2021 income statement reported the following amounts
($ in thousands):...
The 2018 balance sheet for Hallbrook Industries, Inc., is shown below. HALLBROOK INDUSTRIES, INC Balance Sheet December 31, 2818 (s in 8885) Assets Cash Short-term investments Accounts receivable Inventories Property, plant, and equipment (net) $348 298 348 33e 2,480 Total assets $3,78e Liabilities and Shareholders' Equity Current liabilities Long-term liabilities Paid-in capital Retained earnings $ 540 498 1,450 1,228 Total liabilities and shareholders equity $3,78e The company's 2018 income statement reported the following amounts ($ in 000s): Net sales Interest...