External sources to fund the expected growth

Assignment Help Financial Management

Reference no: EM131865766

Suppose that Psy Ops Industries currently has the balance sheet shown below, and that sales for the year just ended were $5.2 million. The firm also has a profit margin of 30 percent, a retention ratio of 20 percent, and expects sales of $8.2 million next year. Assets Liabilities and Equity Current assets $ 2,184,000 Current liabilities $ 1,664,000 Fixed assets 4,100,000 Long-term debt 1,600,000 Equity 3,020,000 Total assets $ 6,284,000 Total liabilities and equity $ 6,284,000 If fixed assets have enough capacity to cover the increase in sales and all other assets and current liabilities are expected to increase with sales, what amount of additional funds will Psy Ops need from external sources to fund the expected growth? (Enter your answer in dollars not in millions. Negative amount should be indicated by a minus sign.)

Reference no: EM131865766

Questions Cloud

Prepare the journal entry to record issuance of shares : Common stock has market value of $20 per share, and preferred stock has a market value of $90 per share. Prepare the journal entry to record issuance of shares

Discuss the major impacts of tv on sports : Discuss the major impacts of TV on sports in terms of club revenues and profits, wages, and competitive balance.

Discuss the two categories of control methods : Discuss the two categories of control methods.Differentiate between preliminary, concurrent, and postaction controls.

What is the difference in approach : Also in either case, fans will get other games of broad, national interest as well. What is the difference in their approach?

External sources to fund the expected growth : what amount of additional funds will Psy Ops need from external sources to fund the expected growth?

Borrowing foreign currency : There is some debate on whether Multinational Corporations (MNC's) increase risk when borrowing foreign currencies.

Identify which kind of job evaluation is used for position : Select a position in your organization for which you have access to its compensation. Identify which kind of job evaluation is used for that position.

What should the market price of stock today : What should the market price of this stock today if investors' required rate of return is 13%.

The firm current capital structure weights : What are a the firm's current capital structure weights?

User Account

All Pages