How much can sales grow without additional funds

Assignment Help Financial Accounting
Reference no: EM131117884

In 2002, sales were $60mn. In 2003, management believes sales will increase by 20% to a total of $72mn. The profit margin is expected to be 5% and the dividend payout ratio is targeted at 40%. No excess capacity exists.

1. What is the additional financing requirement (in $ mn) for 2003 using AFN formula?

2. How much can sales grow without additional funds?

Attachment:- Homework.rar

Reference no: EM131117884

Questions Cloud

Eliminated the front lines from war : In the Pacific, American forces under General ______________________ and Admiral Nimitz had ‘island-hopped' to within bomber range of Japan. In both military theaters, long-range bombers showed how air power had eliminated the front lines from war..
Largest amphibious invasion in history : Then Anglo-American forces organized under General ______________________ launched the largest amphibious invasion in history.
What criteria should be used to determine : Cost Determination, LCM, Retail Method Olson Corporation, a retailer and wholesaler of national brand-name household lighting fixtures, purchases its inventories from various suppliers.
Military and diplomatic strategy : Winning the war required a coordinated military and diplomatic strategy in both Europe and the Pacific. The Allies first drove Germany's ally ______________________ out of the war in 1943.
How much can sales grow without additional funds : What is the additional financing requirement (in $ mn) for 2003 using AFN formula - how much can sales grow without additional funds?
Advances in nuclear fission research : The fear of German advances in nuclear fission research, however, had prompted President Roosevelt to authorize the ______________________; Anglo-American scientists, including some who had fled fascist countries to become naturalized citizens, ra..
Will mesa expect the pound to appreciate or depreciate : Using the information provided, will Mesa expect the pound to appreciate or depreciate in the future? Explain.
Description and accounting features of the method : The accounting theory underlying the treatment of net markdowns and net markups under the method.(AICPA adapted)
Invade nazi-occupied france : By then American factories were at full production, but the armed forces were not yet prepared to invade Nazi-occupied France and thus open a "second front" to relieve Russia.

Reviews

Write a Review

Financial Accounting Questions & Answers

  Explian were there more frauds or just more discovered

Was there something about this particular time period that lead to the discovery of so many frauds? Were there more frauds, or just more discovered? In either case, why did it happen?

  What amount should be reported as rent expense

XXXX Hospital paid $4,600 of rent expense during 20X2. Its balance sheets reported prepaid rent expense as follows: Required: What amount should be reported as rent expense in Easter Hospital's 20X2 statement of operations? Please explain.

  Determine the depreciation rates per mile

Using the units-of-production method, determine the depreciation rates per mile and the amount to be credited to the accumulated depreciation section of each of the subsidiary accounts for the miles operated during the current year

  Significance of emotional contagion and emotional labor

Identify and provide examples for the four key components of emotional intelligence (please make sure the concepts are in your own words), and discuss the practical significance of emotional contagion and emotional labor. Please provide examples to s..

  Inflow of foreign investment

Determine how reasonable it is to consider that the inflow of foreign investment into Australia would have been restricted if Australia, throughout the decision of the Financial Reporting Council, had not made the decision to adopt IFRS from 2005.

  What was the break-even point

If a business had sales of $4,000,000, fixed costs of $1,300,000, a margin of safety of 25%, and a contribution margin ratio of 40%, what was the break-even point?

  Indirect method-operating-investing-financing activity

Analyze each transaction listed in the table that follows and place the appropriate activity beside it to indicate the transaction’s classification and its effect on cash flows using the indirect method. Operating Activity, Investing Activity, Financ..

  What is a non-controlling interest

What is a non-controlling interest? Why must it be reported in the financial statements as an element of equity rather than a liability?

  Cash flows from operating activities section would include

If a customer was overcharged for the services, the customer's invoice can be reduced by posting a: On the statement of cash flows, the cash flows from operating activities section would include: The Statement of Cash Flows answers all of the followi..

  Determine direct and indirect materials used

Determine Direct and indirect materials used. Direct and indirect labor used. Factory overhead applied (a single overhead rate is used based on direct labor cost).

  Receives the tax savings from amortization deductions

Kelly’s marginal tax rate is 33% and discount rate is 12%. What is Kelly’s present value, after-tax cost if she pays $300,000 for an asset at the beginning of the year and if the cost is amortizable over 2 tax years? Kelly receives the tax savings fr..

  Purpose entries in general journal form

Purpose entries in general journal form to record the transactions for the quarter ended June 30, 2013. Set up T-accounts, and post the entries to the T-accounts. Show that an account has been posted by placing a check mark in the reference, col..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd