What was total long-term debt and total liabilities

Assignment Help Financial Management
Reference no: EM131082861

At year-end 2013, Wallace Landscaping’s total assets were $1.6 million and its accounts payable were $320,000. Sales, which in 2013 were $2.5 million, are expected to increase by 30% in 2014. Total assets and accounts payable are proportional to sales, and that relationship will be maintained. Wallace typically uses no current liabilities other than accounts payable. Common stock amounted to $490,000 in 2013, and retained earnings were $270,000. Wallace has arranged to sell $190,000 of new common stock in 2014 to meet some of its financing needs. The remainder of its financing needs will be met by issuing new long-term debt at the end of 2014. (Because the debt is added at the end of the year, there will be no additional interest expense due to the new debt.) Its profit margin on sales is 3%, and 55% of earnings will be paid out as dividends.

What was Wallace's total long-term debt in 2013? Round your answer to the nearest dollar.

$   ________  

What were Wallace's total liabilities in 2013? Round your answer to the nearest dollar.

$   ________  

How much new long-term debt financing will be needed in 2014? (Hint: AFN - New stock = New long-term debt.) Round your answer to the nearest dollar.

$   ________

Reference no: EM131082861

Questions Cloud

What must pitt feel is value of synergy between two firms : The shareholders of Jolie Company have voted in favor of a buyout offer from Pitt Corp. Information about each firm is given Jolie Pitt Price-earnings ratio 13.5 21 Shares Outstanding 75,000 210,000 Earnings 150,000 810,000 Jolies shareholders will r..
Analyze the barriers to the implementation of hims : Analyze the barriers to the implementation of HIMS in a complex adaptive system (CAS) -  Propose a strategy to help reduce the level of resistance from the clinical staff during a transition from CAS to HIMS innovations. Provide a rationale to supp..
Determine significant aspect of a complex health care system : Determine a significant aspect of a complex health care system that represents barriers to a more rapid diffusion of HIT.
What was total long-term debt and total liabilities : At year-end 2013, Wallace Landscaping’s total assets were $1.6 million and its accounts payable were $320,000. Sales, which in 2013 were $2.5 million, are expected to increase by 30% in 2014. Total assets and accounts payable are proportional to sale..
Calculate the difference in interest paid over the life : According to Experian, the average new car loan amount was $28,524 during the second quarter. Do a little research and find current interest rates for car loans in the US. Calculate the difference in interest paid over the life of a 36-month loan ver..
Forecast additional funds needed for the coming year : Broussard Skateboard's sales are expected to increase by 25% from $7.4 million in 2013 to $9.25 million in 2014. Its assets totaled $2 million at the end of 2013. Broussard is already at full capacity, so its assets must grow at the same rate as proj..
Report on the organisation communication strategies : HC1021 - Interpersonal and E-Communication - Group Assignment Guidelines. In groups of 4 students must: Select an international business or company and write a formal business report on the organisation's "Communication and E-Communication" strateg..
Debt–equity ratio-what is the initial cost of the plant : Trower Corp. has a debt–equity ratio of .80. The company is considering a new plant that will cost $103 million to build. When the company issues new equity, it incurs a flotation cost of 7.3 percent. The flotation cost on new debt is 2.8 percent. Wh..

Reviews

Write a Review

 

Financial Management Questions & Answers

  Shares of stock outstanding-what is the price-earnings ratio

Mining Materials, Inc. has a market-to-book ratio of 1.6, net income of $180,000, a book value per share of $52.50, and 120,000 shares of stock outstanding. What is the price-earnings ratio?

  Determine the cost of this loan after taxes as percentage

You are the CFO of a relatively small firm wishing to borrow 500,000 euros for an expansion project you plan to execute in France. This project is expected to take 6 months to complete, at which time your firm will repay the 500,000 euros plus the ex..

  What is the after tax salvage value of the asset

An asset used in a four-year project falls in the five-year MACRS class for tax purposes. The asset has an acquisition cost of $6,080,000 and will be sold for $1,280,000 at the end of the project. If the tax rate is 35 percent, what is the after tax ..

  Determine the investments net present value

Determine the investment's net present value, the internal rate of return, payback period and the discounted payback period and analyse the profitability of Briscoes Ltd by preparing a common-size income statement and by calculating any other ratios..

  What will your monthly payment be

You want to buy a new sports car from Muscle Motors for $52,500. The contract is in the form of a 60-month annuity due at an APR of 6.25 percent. What will your monthly payment be?

  Calculate the intrinsic value of warrant and market premium

ABC Co. has warrants that allow the purchase of two shares of its common stock at $30 per share. The common stock price per share is $33 and the market value of the warrant is $8. Calculate the intrinsic (theoretical) value of the warrant and its mar..

  What will be amount of interest accumulated at the time

Emilys current salary is $85,000 per year, and she is planning to retire 24 years from now. She anticipates that her annual salary will increase by$1,000 each year ($85,000 the first year, to $86,000 the second year, $87,000 the third year, and so fo..

  Find a reputable article on the web about how to make your

find a reputable article on the web about how to make your market portfolio an efficient portfolio or how to win at the

  Implied by the two outstanding debt issues

Vedder, Inc., has 6.5 million shares of common stock outstanding. The current share price is $61.50, and the book value per share is $4.50. Vedder also has two bond issues outstanding. Assume that the overall cost of debt is the weighted average of t..

  What rate of return per quarter are you being offered

Suppose an investment offers to triple your money in 30 months (don’t believe it). What rate of return per quarter are you being offered?

  Discuss the limitations of ratio analysis

Discuss the limitations of ratio analysis. In a summary explain the limitations of ratio analysis to help me with a project. I need good details, with well explained limitations please.

  Complete balance sheet for tarheels upholstery subsidiary

In your computations, you should round all numbers to the nearest $1,000. Based upon the industry average financial ratios presented here, complete the projected balance sheet for Tarheel's upholstery subsidiary.

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