External sources to fund the expected growth

Assignment Help Finance Basics
Reference no: EM132541273

Suppose that Wind Em Corp. currently has the balance sheet shown below, and that sales for the year just ended were $6.9 million. The firm also has a profit margin of 30% , a retention ratio of 20%, and expects sales of $7.9 million next year.

Assets Liabilities & Equity

Current Assets: $1, 931, 000 Current Liabilities: $2, 390, 850

Fixed Assets: $4, 900, 000 Long-Term Debt: $1, 550, 000

Total Assets: $6, 831, 000 Equity: $2, 890, 150

Total Liabilities & Equity: $6, 831, 000

If all assets and current liabilities are expected to grow with sales, what amount of additional funds will Wind Em need from external sources to fund the expected growth? (Enter your answer in dollars not in millions, please)

Reference no: EM132541273

Questions Cloud

Strategic and tactical actions : Read the popular business press (e.g., Business Week, Fortune, Fast Company), and identify a strategic action and a tactical action taken by firms approximately
Cooperative strategy : You will use the Internet to find two articles describing firms' use of a cooperative strategy: one where trust is being used as a strategic asset
Understanding the external environment : Given the importance of understanding the external environment, What were the implications of the firms' failure to understand that environment?
What is the relationship between dividend growth : Which stock will give you the best return? Explain what is the relationship between dividend growth and the price of a stock. Please show all your work.
External sources to fund the expected growth : Suppose that Wind Em Corp. currently has the balance sheet shown below, and that sales for the year just ended were $6.9 million
What is the real rate of return for a t-bill : US government T-bills had the nominal rates of return of 5.56 percent. What is the real rate of return for a T-bill?
Usaf common stock price : If USAF common stock price actually increases to $36 per share, how much would you to make?
How much net working capital does the firm need to fund : Dandee Lions, Inc. has a cash balance of $96,000, accounts payable of $211,000, inventory of $194,000, accounts receivable of $310,000, notes payable
What dividend will you receive after 3 years : A company pays a dividend of $2.50. What dividend will you receive after 3 years if the company grows its dividend by 3.50%?

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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