Ivanhoe Company has net income of $1,015,400, assets of $14,475,200, and retains 79 percent of its...
Ivanhoe Company has net income of $1,015,400, assets of
$14,475,200, and retains 79 percent of its income every year. What
is the company’s internal growth rate? (Round answer to
1 decimal place, e.g. 15.5%.)
| Internal growth rate | enter the internal growth rate in percentages rounded to 1 decimal place % |
Homework Answers
The company's internal growth rate is computed as shown below:
= retention rate x Net income / Assets
= 0.79 x $ 1,015,400 / $ 14,475,200
= 5.5% Approximately
Feel free to ask in case of any query relating to this question
Add Answer to:
Ivanhoe Company has net income of $1,015,400, assets of
$14,475,200, and retains 79 percent of its...
Wildhorse Company has net income of $1,230,700, assets of $12,188,200, and retains 69 percent of its income every year....
Wildhorse Company has net income of $1,230,700, assets of $12,188,200, and retains 69 percent of its income every year. What is the company’s internal growth rate? (Round answer to 1 decimal place, e.g. 15.5%.) Internal Growth Rate %
Sunland Company has a net profit margin of 7.5 percent, debt ratio of 42 percent, total...
Sunland Company has a net profit margin of 7.5 percent, debt ratio of 42 percent, total assets of $4,588,700, and sales of $5,520,600. If the company has a dividend payout ratio of 74 percent, what is its sustainable growth rate? (Round answer to 1 decimal place, e.g. 17.5%.) Sustainable growth rate enter the sustainable growth rate in percentages rounded to 1 decimal place %
Do It! Review 5-06 Pharoah Company reported the following in its 2022 and 2021 income statements....
Do It! Review 5-06
Pharoah Company reported the following in its 2022 and 2021
income statements.
2022
2021
Net sales
$150,000
$130,000
Cost of goods sold
90,000
78,000
Operating expenses
36,000
18,200
Income tax expense
18,600
11,200
Net income
$ 5,400
$ 22,600
Determine the company’s gross profit rate and profit margin for
both years. (Round answers to 1 decimal place, e.g.
52.7%.)
2022
2021
Gross profit rate
enter percentages rounded to 1 decimal place
%
enter percentages rounded to...
What is the internal growth rate using beginning of period assets? Gilmore, Inc., had equity of...
What is the internal growth
rate using beginning of period assets?
Gilmore, Inc., had equity of $145,000 at the beginning of the year. At the end of the year, the company had total assets of $210,000. During the year, the company sold no new equity. Net income for the year was $27,000 and dividends were $5,800. a. Calculate the internal growth rate for the company. (Do not round intermediate calculations and enter your answer as a percent rounded to 2...
Gilmore, Inc., had equity of $145,000 at the beginning of the year. At the end of the year, the company had total ass...
Gilmore, Inc., had equity of $145,000 at the beginning of the year. At the end of the year, the company had total assets of $210,000. During the year, the company sold no new equity. Net income for the year was $27,000 and dividends were $5,800. a. Calculate the internal growth rate for the company. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. Calculate the internal growth rate using...
Using these data from the comparative balance sheet of Ivanhoe Company, perform vertical analysis. (Round percentages...
Using these data from the comparative balance sheet of Ivanhoe Company, perform vertical analysis. (Round percentages to 1 decimal place, e.g. 12.5%.) Dec. 31, 2022 Dec. 31, 2021 Amount Percentage Amount Percentage Accounts receivable $ 362,700 Enter a value in percentages rounded to 1 decimal place. % $ 310,000 Enter a value in percentages rounded to 1 decimal place. % Inventory $ 677,600 Enter a value in percentages rounded to 1 decimal place. % $ 560,000 Enter a value in...
You've collected the following information about Molino, Inc.: $200,000 Sales Net income $ 14,000 Dividends $...
You've collected the following information about Molino, Inc.: $200,000 Sales Net income $ 14,000 Dividends $ 9,000 Total debt $80,000 Total equity $62,000 a. What is the sustainable growth rate for the company? (Do not round Intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g.. 32.16.) b. If it does grow at this rate, how much new borrowing will take place in the coming year, assuming a constant debt-equity ratio? (Do not round intermediate...
Crane Supply Company’s financial statements for the most recent fiscal year are shown below. The company...
Crane Supply Company’s financial statements for the most recent fiscal year are shown below. The company management projects that sales will increase by 14 percent next year. Assume that all costs and assets increase directly with sales. The company has a constant 40 percent dividend payout ratio and has no plans to issue new equity. Any financing needed will be raised through the sale of long-term debt. Using the forecasted income and dividend information for Crane Supply, find the internal...
Wildhorse Supply Company’s financial statements for the most recent fiscal year are shown below. The company...
Wildhorse Supply Company’s financial statements for the most recent fiscal year are shown below. The company management projects that sales will increase by 14 percent next year. Assume that all costs and assets increase directly with sales. The company has a constant 29 percent dividend payout ratio and has no plans to issue new equity. Any financing needed will be raised through the sale of long-term debt. Using the forecasted income and dividend information for Wildhorse Supply, find the internal...
Exercise 11-20 a-c Crane Company has $1,140,000 in assets and $1,140,000 in stockholders’ equity, with 36,600...
Exercise 11-20 a-c
Crane Company has $1,140,000 in assets and $1,140,000 in
stockholders’ equity, with 36,600 shares outstanding the entire
year. It has a return on assets of 15%. During 2021, it had net
income of $171,000. On January 1, 2022, it issued $397,000 in debt
at 6% and immediately repurchased 18,300 shares for $397,000.
Management expected that, had it not issued the debt, it would have
had net income of $171,000 in 2022.
Determine the company’s net income and...
Do It! Review 5-06
Pharoah Company reported the following in its 2022 and 2021
income statements.
2022
2021
Net sales
$150,000
$130,000
Cost of goods sold
90,000
78,000
Operating expenses
36,000
18,200
Income tax expense
18,600
11,200
Net income
$ 5,400
$ 22,600
Determine the company’s gross profit rate and profit margin for
both years. (Round answers to 1 decimal place, e.g.
52.7%.)
2022
2021
Gross profit rate
enter percentages rounded to 1 decimal place
%
enter percentages rounded to...
What is the internal growth
rate using beginning of period assets?
Gilmore, Inc., had equity of $145,000 at the beginning of the year. At the end of the year, the company had total assets of $210,000. During the year, the company sold no new equity. Net income for the year was $27,000 and dividends were $5,800. a. Calculate the internal growth rate for the company. (Do not round intermediate calculations and enter your answer as a percent rounded to 2...
You've collected the following information about Molino, Inc.: $200,000 Sales Net income $ 14,000 Dividends $ 9,000 Total debt $80,000 Total equity $62,000 a. What is the sustainable growth rate for the company? (Do not round Intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g.. 32.16.) b. If it does grow at this rate, how much new borrowing will take place in the coming year, assuming a constant debt-equity ratio? (Do not round intermediate...
Exercise 11-20 a-c
Crane Company has $1,140,000 in assets and $1,140,000 in
stockholders’ equity, with 36,600 shares outstanding the entire
year. It has a return on assets of 15%. During 2021, it had net
income of $171,000. On January 1, 2022, it issued $397,000 in debt
at 6% and immediately repurchased 18,300 shares for $397,000.
Management expected that, had it not issued the debt, it would have
had net income of $171,000 in 2022.
Determine the company’s net income and...
Most questions answered within 3 hours.
-
What is meant by a “term premium”?
What can explain such a premium? Is it a...
asked 19 minutes ago -
23. Which molecule has only covalent bonds? A. CO2 B. Al2O3 C.
Mg3N2
24. The octet...
asked 44 minutes ago -
the
total pressure for a mixture of N2O4 and NO2 is 2.20 atm. If Kp=
7.10...
asked 47 minutes ago -
Delaware Corp. prepared a master budget that included $22,385
for direct materials, $28,600 for direct labor,...
asked 44 minutes ago -
For pesticide HCB (hexachlorobenzene), its logarithmic partition
coefficient log Kow is 5.6. What would be the...
asked 47 minutes ago -
A chemist requires 0.422 mil Na2CO3 for a reaction. How many
grams does this correspond to?
asked 51 minutes ago -
If the vapor pressure of carvone is approximately 9.4 torr at 99
°C, approximately how much...
asked 1 hour ago -
A juice bottling company is carrying out a test at 10%
significance that the mean population...
asked 1 hour ago -
What is the reflectivity (in percent) needed to keep water at a
temperature near its freezing...
asked 1 hour ago -
Suppose that the average surface temperature of Earth is 300K.
Assume this is uniform over its...
asked 1 hour ago -
Draw the condensed structural formula for alkenes and alkynes or
the line-angle structural formula for cycloalkenes...
asked 1 hour ago -
M. Laing has suggested a new arrangement of the periodic table
(J.Chem.Ed.1989, 66,
746). Answer the following...
asked 1 hour ago