sheet at year-end is similar in percentage of sales to that of previous years (and this will continue in the future). All fixed assets) and current liabilities will vary directly with sales. The firm is working at full capacity. Assets Cash Accounts receivable Inventory Current assets Fixed assets Total assets $7 25 28 $ 60 45 Balance Sheet (in $ millions) $ 105 Liabilities and Stockholders' Equity Accounts payable Accrued wages Accrued taxes. Current liabilities Notes payable Common stock Retained earnings Total liabilities and stockholders' equity $ 20 7 13 Answer is complete but not entirely correct. New funds $ 11,900,000 x $ 40 15 20 30 $ 105 Owen's Electronics has an aftertax profit margin of 10 percent and a dividend payout ratio of 45 percent. If sales grow by 20 percent next year, determine how many dollars of new funds are needed to finance the growth Note: Do not round intermediate calculations. Enter your answer in dollars, not millions, (e.g., $1,234,567).
sheet at year-end is similar in percentage of sales to that of previous years (and this will continue in the future). All fixed assets) and current liabilities will vary directly with sales. The firm is working at full capacity. Assets Cash Accounts receivable Inventory Current assets Fixed assets Total assets $7 25 28 $ 60 45 Balance Sheet (in $ millions) $ 105 Liabilities and Stockholders' Equity Accounts payable Accrued wages Accrued taxes. Current liabilities Notes payable Common stock Retained earnings Total liabilities and stockholders' equity $ 20 7 13 Answer is complete but not entirely correct. New funds $ 11,900,000 x $ 40 15 20 30 $ 105 Owen's Electronics has an aftertax profit margin of 10 percent and a dividend payout ratio of 45 percent. If sales grow by 20 percent next year, determine how many dollars of new funds are needed to finance the growth Note: Do not round intermediate calculations. Enter your answer in dollars, not millions, (e.g., $1,234,567).
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter16: Financial Statement Analysis
Section: Chapter Questions
Problem 3MAD: Deere Company (DE) manufactures and distributes farm and construction machinery that it sells...
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Financial Ratios
A Ratio refers to a figure calculated as a reference to the relationship of two or more numbers and can be expressed as a fraction, proportion, percentage, or the number of times. When the number is determined by taking two accounting numbers derived from the financial statements, it is termed as the accounting ratio.
Return on Equity
The Return on Equity (RoE) is a measure of the profitability of a business concerning the funds by its stockholders/shareholders. ROE is a metric used generally to determine how well the company utilizes its funds provided by the equity shareholders.
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