Reference no: EM131337324
Stevens Textile's 2013 financial statements are shown below: Balance Sheet as of December 31, 2013 (Thousands of Dollars) Cash $ 1,080 Accounts payable $ 4,320 Receivables 6,480 Accruals 2,880 Inventories 9,000 Line of credit 0 Total current assets $16,560 Notes payable 2,100 Net fixed assets 12,600 Total current liabilities $ 9,300 Mortgage bonds 3,500 Common stock 3,500 Retained earnings 12,860 Total assets $29,160 Total liabilities and equity $29,160 Income Statement for December 31, 2013 (Thousands of Dollars) Sales $36,000 Operating costs 32,440 Earnings before interest and taxes $ 3,560 Interest 460 Pre-tax earnings $ 3,100 Taxes (40%) 1,240 Net income $ 1,860 Dividends (45%) $ 837 Addition to retained earnings $ 1,023
A. Suppose 2014 sales are projected to increase by 15% over 2013 sales. Use the forecasted financial statement method to forecast a balance sheet and income statement for December 31, 2014. The interest rate on all debt is 9%, and cash earns no interest income. Assume that all additional debt in the form of a line of credit is added at the end of the year, which means that you should base the forecasted interest expense on the balance of debt at the beginning of the year. Use the forecasted income statement to determine the addition to retained earnings. Assume that the company was operating at full capacity in 2013, that it cannot sell off any of its fixed assets, and that any required financing will be borrowed as notes payable. Also, assume that assets, spontaneous liabilities, and operating costs are expected to increase by the same percentage as sales.
Determine the additional funds needed. Round your answers to the nearest dollar. Do not round intermediate calculations.
Total assets $
AFN $
B. What is the resulting total forecasted amount of the line of credit? Round your answer to the nearest dollar. Do not round intermediate calculations. Notes payable $
|
Probability that the project will have a net present value
: What is the probability that the project will have a negative net present value?- What is the probability that the project will have a net present value greater than $2.2 million?
|
|
How to address responders emotional health
: Our discussion this week focuses on mental health needs often overlooked, those of first responders. Beyond Debriefing: How to Address Responders' Emotional Health
|
|
Describe industry standards for protecting data
: Describe industry standards for protecting data integrity and for mitigating risks that safeguard health information systems.
|
|
Develop a community teaching proposal designed to address
: Select one of the following as the focus for the teaching plan:Primary Prevention/Health Promotion,Secondary Prevention/Screenings for a Vulnerable Population,Bioterrorism/Disaster,Environmental Issues.After completing the teaching proposal, review t..
|
|
What is resulting total forecasted amount of line of credit
: Stevens Textile's 2013 financial statements are shown below: Balance Sheet as of December 31, 2013 (Thousands of Dollars) Cash $ 1,080 Accounts payable $ 4,320 Receivables 6,480 Accruals 2,880 Inventories 9,000 Line of credit 0 Total current assets $..
|
|
Identify one issue a global marketing director
: Identify one issue a global marketing director will face when creating advertising for world markets. Recommend how the director can overcome that issue. Explain.
|
|
Compute the expected net present value of the project
: Compute the expected net present value of this project.- How does the change in the estimated sales volume influence the net present value of the project?
|
|
Nonclinical applications of emerging technology
: Describe two nonclinical applications of emerging technology designed to support communication with remote satellite facilities.
|
|
Justify the uniform plate temperature assumption
: Compute and plot the corresponding variations in the convection and radiation heat transfer rates.
|