Booths after-tax profit margin is forecasted to be 5

Assignment Help Finance Basics
Reference no: EM13483314

The Booth Company"s sales are forecasted to increase from $1,000 in 2002 to $2,000 in 2003. Here is the December 31, 2002, balance sheet:

Cash

$ 100

Accounts payable

$ 50

Accounts receivable

200

Notes payable

150

Inventories

200

Accruals

50

Net fixed assets

500

Long-term debt

400

 


 


Common stock

100

 


 


Retained earnings

250

Total assets

 

$1,000

 

Total liabilities and equity

$1,000

Booth"s fixed assets were used to only 50 percent of capacity during 2002, but its current assets were at their proper levels. All assets except fixed assets increase at the same rate as sales, and fixed assets would also increase at the same rate if the current excess capacity did not exist. Booth"s after-tax profit margin is forecasted to be 5 percent, and its payout ratio will be 60 percent. What is Booth"s additional funds needed (AFN) for the coming year?

Reference no: EM13483314

Questions Cloud

Crydon inc manufactures an advanced swim fin for scuba : crydon inc. manufactures an advanced swim fin for scuba divers. management is now preparing detailed budgets for the
Te company has a standard paraglider model but also makes : updraft systems inc. makes paragliders for sale through specialty sporting goods stores. the company has a standard
Watkins inc has never paid a dividend and when it might : watkins inc. has never paid a dividend and when it might begin paying dividends is unknown. its current free cash flow
Orange company uses a plantwide overhead rate with machine : orange company uses a plantwide overhead rate with machine hours as the allocation base. use the following information
Booths after-tax profit margin is forecasted to be 5 : the booth companys sales are forecasted to increase from 1000 in 2002 to 2000 in 2003. here is the december 31 2002
A new bank has vault cash of 1million and 5 million in : a new bank has vault cash of 1million and 5 million in deposit held at its federal reserve district bank. a. if the
At the end of 2011 geisel inc has a 1700 debit balance in : at the end of 2011 geisel inc has a 1700 debit balance in the allowance for doubtful accounts before adjusting entries
What is the expected market return if the expected return : what is the expected market return if the expected return on asset x is 20 percent its beta is 1.5 and the risk free
Waldens incremental borrowing rate is 8 percent per year : walden company leases manufacturing equipment from preston rentals co. on january 1 2012. the following data pertain to

Reviews

Write a Review

Finance Basics Questions & Answers

  What will the waccs be for each division

What will the WACCs be for each division? (Do not round intermediate calculations and round your final answers to 2 decimal places.)

  Describe the five methods used to categorize retailers

Explain the different methods for the study and practice of retailing.

  What is the standard deviation of your return

The returns on your portfolio over the last 5 years were -5%, 20%, 0%, 10% and 5%. What is the standard deviation of your return?

  Using the sample financial statements create pro forma

decide upon an initiative you want to implement that would increase sales over the next five years for example market

  Present value concept and calculating present value

Assume you're to receive the stream of annual payments (also called an "annuity") of $9000 every year for three years starting this year. The discount rate is 6%. What is the present value of such three payments?

  How much money will he have saved at the end of year 3

Tom is planning to invest the following amount at 4percent interest. how much money will he have saved at the end of year 3?

  Describe the possible impact of inflation on the following

inflation can have significant effects on income statements and balance sheets and therefore on the calculation of

  Estimate price of the company stock

The Company has determined that earnings and dividends will decline at a rate of 5 percent yearly. Assume that Ks=11% and Do=$2.00.

  Solvency and liquidity problems

Choose a publicly held company. Look at the most recent Income Statement, Balance Sheet, and Statement of Cash Flows and decide if you will give this company a loan equal to 10 percent of their retained earnings.

  Jack is driving his car when tom runs a red light and hits

question 1. a modified endowment contract is a life insurance policy that has faileda. the test for life insurance b.

  Do apple inc issue convertible securities if so why if not

do apple inc issue convertible securities? if so why if not why not. how about warrants and do they issue employees

  Select a publicly traded company and gather financial

select a publicly traded company and gather financial information from the companys annual report and other credible

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