What amount of additional funds will wall-e need

Assignment Help Finance Basics
Reference no: EM131441817

Question: Suppose that Wall-E Corp. currently has the balance sheet shown below, and that sales for the year just ended were $7.8 million. The firm also has a profit margin of 30 percent, a retention ratio of 20 percent, and expects sales of $9.8 million next year. Fixed assets are currently fully utilized, and the nature of Wall-E's fixed assets is such that they must be added in $1 million increments. Assets Liabilities and Equity Current assets $ 2,730,000 Current liabilities $ 2,184,000 Fixed assets 5,070,000 Long-term debt 1,900,000 Equity 3,716,000 Total assets $ 7,800,000 Total liabilities and equity $ 7,800,000 If current assets and current liabilities are expected to grow with sales, what amount of additional funds will Wall-E need from external sources to fund the expected growth? (Enter your answer in dollars not in millions.)

Reference no: EM131441817

Questions Cloud

Institutional challenges to equality in the workplace : Race, class, and gender still create many institutional challenges to equality in the workplace. In this assignment you are to describe at least two typical manifestations of discrimination in the workforce, which includes any discriminatory pract..
Evaluate the key risk factors in the given project : CIS312- Why was the HealthCare.gov project so important? Evaluate the key risk factors in this project. Classify and describe the problems this project encountered.
Public versus private goods : Describe the difference between public versus private goods as it relates to the rivalry in consumption and excludability. does the free rider principle play in a role in what constitutes a private or a public good/service? why?
The natural environment : Develop a ratio that a business might use to measure the impact of its operations on: The communities in which it is located, or the customers that use its products, The natural environment, or The health and safety of its employees
What amount of additional funds will wall-e need : Suppose that Wall-E Corp. currently has the balance sheet shown below, and that sales for the year just ended were $7.8 million. The firm also has a profit margin of 30 percent, a retention ratio of 20 percent, and expects sales of $9.8 million ne..
How prominent are ethics-ethical distinctions in practice : How prominent are ethics and ethical distinctions in practice and terminology between public and private management? What major administrative decentralized measures were taken following the Watergate scandal and its subsequent ethical issues?
Does your audience share your opinions and values : he purpose of a proposalis to highlight standout ideas, and to do so in a manner that can convince an audience to support a project. Proposals delivered in a workplace are often part of a competitive process in which the strongest proposal is offe..
Explain the meaning of the phrase sell right not more : Why does having a common profitability goal throughout the supply chain lead to better performance with regard to returns? Explain the meaning of the phrase "Sell right, not more" with regard to the overall returns process.
Case scenario of purchase a car from a local dealer : Jay Wechsler agrees to purchase a car from a local dealer, the Con Car Co. The purchase price is $15,000. Jay has the cash to pay the entire amount and wants to do so. Con's sales manager ises the following argument to convince him to finance the ..

Reviews

Write a Review

Finance Basics Questions & Answers

  Calculate nominal interest rate of the loan

Peter land a loan of $328,337.1919 from George. The loan will be repaid over the next twenty-four years, beginning from the end of the next years. The Real interest expense for the first year is $15,785.44189.

  What advantage of common methods for controlling translation

Transaction exposure to currency risk refers to potential changes in the value of future cash flows. What are the advantages and disadvantages of the common methods for controlling translation exposure?

  What should the call option sell for today

If no options currently trade on the stock, is there a way to create a synthetic call option with identical payoffs to the call option described above? If there is, how would you do it?

  Assume that neither betas nor the risk-free rate change

the common stock of baxter paint has a beta of 1.5 and is currently in equilibrium. the required rate of return on this

  Determining the type of options

An investor who writes standard call options against stock held in his or her portfolio is said to be selling what type of options?

  Research to develop a new computer game

KADS, Inc., has spent $400,000 on research to develop a new computer game.

  Describe the advantages & disadvantages of using ilit

If possible, please describe the advantages & disadvantages of using ILIT's in estate planning.

  Entry for acquisition of property

Valdilla's Music Store acquired Land and old buildling in exchange for 50,000 shares of its common stock, par $0.50 and cash of $80,000.

  Legal or illegal compensation plan

Students will read assigned critical thinking applications to read.  You are required to answer the questions following the case. Be sure to number and answer ALL questions. Responses should be in depth and high quality, with necessary relevant detai..

  Determine the annual cost average hourly cost and burden

Determine the annual cost, average hourly cost, and burden markup of an hourly employee given the following information. Assume the employee takes full advantage of the 401(k) benefit.

  What does it mean when a bond is issued at a premium

What does it mean when a bond is issued at a premium or a discount. In your response, discuss the difference between the effective and stated interest rate.

  What is the intrinsic value of the stock today

what is the intrinsic value of the stock today? Given the current stock price today (P0 = $16), should you buy the stock and briefly explain why or why not?

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