What is the amount of projected assets what is the amount

Reference no: EM13392044

Small Motors Inc, which is currently operating at full capacity, has sales of $29,000, current assets of $1,600, current liabilities of $1,200, net fixed assets of $27,500, and a 5 percent profit margin. The firm has no long-term debt and does not plan on acquiring any. The firm does not pay any dividends. Sales are expected to increase by 5.5 percent next year. If all assets, short-term liabilities, and costs vary directly with sales, answer the following questions? Hint: (Additional Financing Required = Projected assets -projected liabilities-current equity-projected increase in retained earnings)

a. What is the amount of projected assets?

b. What is the amount of projected liabilities?

c. What is the current equity?

d. What is the projected increase in retained earning?

e. How much additional equity financing is required for next year?

Reference no: EM13392044

Questions Cloud

What does the product-process matrix tell us how must the : what does the product-process matrix tell us? how should the kitchen of a chinese restaurant be structured?how does

Find the difference between a movement along and shift of : what is the difference between a movement along and shift of the demand curve? show the impact on the equilibrium price

Describe the product design philosophy behind industrial : discuss the product design philosophy behind industrial design and design for manufacture and assembly. which one do

Marketing plan your company has just developed a new sports : marketing plan your company has just developed a new sports drink that is in a container which will keep it cool for up

What is the amount of projected assets what is the amount : small motors inc which is currently operating at full capacity has sales of 29000 current assets of 1600 current

How should raj handle the saturday situation write down the : tom and katie work for a 24 hour seven day a week kinkos in orlando. they have the same educational and professional

Explain how and why you made th decision to pursue mba in : develop a three page analysis excluding the title and reference pages on the projected return on investment for your

The ethical concept of independence means that the : the ethical concept of independence means that an accountant employeda. by a corporation cannot prepare financial

Yu compute the incremental costs to be 268000 and fully : you operate your own small building company and have decided to bid on a government contract to build a pedestrian

User Account

All Pages