All Pages

Assignment Help Finance Basics
Reference no: EM1350400

See below the 2006 balance sheet for Marbell Inc.

Assets Liabilities & Stockholders' Equity
Cash \$15,000 Accts Payable \$90,000
Accts. Rec. 90,000 Notes Payable 30,000
Inventory 60,000 Accrued expenses 7,500
Current Assets 165,000 Current Liabilities 127,500
Fixed assets 60,000 Common Stock 75,000
Retained earnings 22,500
Total Liabilities + S.E. Equity \$225,000

Sales for 2006 were \$300,000. Sales for 2007 have been projected to increase by 20%.
Assuming that Marbell Inc. is operating below capacity, calculate the amount of new funds required to finance this growth. Marbell has an 8% return on sales and 70% is paid out as dividends. Show all work and explain.

Percent of Sales Table

Cash Accts. Payable
Accts. Rec. Accrued expenses
Inventory
Current assets Current Liabilities
(spontaneous) (spontaneous)

New Sales Level =

New funds required =

Use MS Word for response.

Questions Cloud

 Principle motives for holding cash-near cash assets : Briefly identify and explain the principle motives for holding cash and near cash assets. What are the risk-return trade-off associated with inventory management? What is the potential energy of the system : At the instant the alpha particle leaves the nucleus, the centers of the two are 7.5 apart and essentially at rest. Find their speeds while they're a great distance apart. Treat each particle as a spherical charge distribution. Determine columns that make up the primary key : Carry out the following tasks below by using the correct SQL statements. Create the statements in Oracle by using the following steps (SQL > SQL commands > Enter Command). Determine the columns that make up the primary key of the l_lunch_items tabl.. Explain what value would it be to know were going : Explain What value would it be to know that you were going to be training a class of persons between the ages of 20 and 35? Determine additional funds needed : Suppose that Marbell Corporation is operating below capacity, calculate the amount of new funds required to finance this growth. Marbell has an 8 percent return on sales and 70 percent is paid out as dividends. Mental-physical and spiritual health : How realistic is it to expect health care workers to model mental, physical, and spiritual health? If Americans tend to be overweight, underactive workacoholics who experience burnout, why should health care workers be any different? Individual motivations - case studies : Eval whether the individuals will be motivated to behave as desired. Then select the appropriate managerial action from those listed. Calculate the emf induced in rectancular coil : An electron has an initial velocity of (15.0 j + 22.0 k) km/s and the constant acceleration of (3.00*10^12 m/s^22)i in a region in which uniform electric and magnetic fields are present. If B = (400 µT)i, find the electric field E. Question-managerial accounting : The following monthly budgeted data are available for a wholesale company: Calculate the break-even sales for the month. Calculate the margin of safety in sales dollars.

Write a Review

Compare channels of distribution to product and price

Please compare Channels of Distribution to Product, Price, & Promotion in terms of its importance within the Marketing Mix.

Computing cost to evaluate items using decrement factor

After analyzing a sample of remaining 480 items, you determine that sample is overpriced by 6%. By using this 6% decrement factor, what cost must you evaluate for those items?

Sec enforcement

What is the most recent litigation brought by SEC against public firm or against the accounting firm? What is the most recent Staff Accounting Bulletin which provides guidance to profession? What was the guidance given?

Calculation of weighted average cost of capital

Calculation of weighted average cost of capital from given data and The company anticipates issuing new common stock during the upcoming year

Explain expected gain from the acquisitions

Explain expected gain from the acquisitions and what is the NPV of the acquisition to HC shareholders if it costs an average of \$30 per share to acquire all of the outstanding shares

Computation of value of the bond at various options

Computation of value of the bond at various options and Suppose your company is selling a bond that will pay you \$1000 in one year from today

Find which statement is correct

Stock X has the following information. Suppose the stock market is efficient and the stock is in equilibrium, expected dividend, D1 = \$3.00, current price, P0 = \$50,

Find unlevered beta

El Capitan Foods has a capital structure of 40 percent debt and 60 percent equity, if its tax rate is 35%, and its beta (leveraged) is 1.25. Based on the Hamada equation,

Computation of future value of annuity and p/e ratio

Computation of future value of annuity and P/E ratio and what is the future value of an annuity is

Describe labour cost

Describe Labour Cost and how many testers should they use to carry out the testing effort

Determine required rate of return

The current dividend yield on Clayton's Metals common stock is 3.2%. The company just paid a \$1.48 yearly dividend and announced plans to pay \$1.54 next year.

Calculation of ebit and sensitivity analysis

Calculation of EBIT and Sensitivity Analysis of The Can-Do Co. is analyzing a proposed project