User Account

All Pages

What was ambrose''s total debt

Assignment Help Finance Basics
Reference no: EM131106425

At year-end 2008, total assets for Ambrose Inc. were $1.2 million and accounts payable were $375,000. Sales, which in 2008 were $2.5 million, are expected to increase by 25% in 2009. Total assets and accounts payable are proportional to sales, and that relationship will be maintained; that is, they will grow at the same rate as sales. Ambrose typically uses no current liabilities other than accounts payable. Common stock amounted to $425,000 in 2008, and retained earnings were $295,000. Ambrose plans to sell new common stock in the amount of $75,000. The firm's profit margin on sales is 6%; 60% of earnings will be retained.
a. What was Ambrose's total debt in 2008?
b. How much new long-term debt financing will be needed in 2009?

Reference no: EM131106425

Questions Cloud

Claimed that the critical fractile formula : We claimed that the critical fractile formula, Equation (12.8), is appropriate because the optimal Q should satisfy cunder(1 - F(Q)) = cover F(Q), that is, the cost of under stocking times the probability of under stocking should equal the cost of ..
How many shares of beck''s common stock were outstanding : Beck purchased 75,000 shares of its common stock and held it in Treasury. At December 31, 2011, how many shares of Beck's common stock were outstanding?
What are the principal considerations of a board of director : What are the principal considerations of a board of directors in making decisions involving dividend declarations? Discuss briefly.
Shortage cost and the one with a service level constraint : In both (R,Q) models, the one with a shortage cost and the one with a service level constraint, we set up Solver so that the multiple k is constrained to be nonnegative.
What was ambrose''s total debt : Ambrose plans to sell new common stock in the amount of $75,000. The firm's profit margin on sales is 6%; 60% of earnings will be retained. a. What was Ambrose's total debt in 2008? b. How much new long-term debt financing will be needed in 2009?
Create threads causing a racing condition : In your test program you will need to create 100 or more threads causing a racing condition. One racing condition example can be each thread constantly requests a PID in multiple iterations.
Develop organizational-level goals : Develop organizational-level goals. Develop departmental-contributor-level and individual-contributor-level goals aligned with the organizational goals.
What factors influence the dividend policy of a company : What factors influence the dividend policy of a company?
Assumption of customer responsibilities : How does the job of the CIO change with the assumption of customer responsibilities? Do you agree with this new development? Why or why not?

Reviews

Write a Review

Finance Basics Questions & Answers

  A new after-school delinquency prevention program

A new after-school delinquency prevention program is being established. The Program Director calls you up on the telephone and asks your advice on how to design a good program. What advice can you give her?

  Example of what happens during the introduction phase

During the sales life cycle, which is an example of what happens during the introduction phase?

  Computation of net present value and return on investment

Computation of net present value and return on investment and Create a template like the attachment or use the template however just remember to use the numbers given in the assignment

  Should the company proceed with the new project

The CCA rate on fixtures and equipment is 30%. The companys tax rate is 40% and its cost of capital is 12%. Should the company proceed with the new project?

  Various aspects of finance that management

Indicate the various aspects of finance that management must understand. Describe why a manager needs to understand the characteristics and importance of financial markets including risk and efficiency. Describe why cash flow is more important than ..

  How has the relationship changed

Wal-Mart and other big-box retailers have really changed the relationship between goods manufacturers and giant retail buyers. How has the relationship changed? Does the current relationship help or hurt our economy? Support your answer.

  What is the firms cost of preferred stock

What is the firms cost of retained earnings using the CAPM, DCF, and Bond-Yield-Plus-a-Risk-Premium approaches? What is your final eatimate of rs?

  What political realities might explain the federal reserve

what political realities might explain the federal reserve act of 1913 placed two federal reserve banks in missouri?

  Moving average forecasting models are powerful tools that

moving average forecasting models are powerful tools that help managers in making educated forecasting decisions. a

  Determine expected return

Suppose you have two hundred shares of Somner Resources preferred stock, which currently sells for $40 per share and pays annual dividends of $3.40 each share.

  Farcry industries a maker of telecommunications equipment

farcry industries a maker of telecommunications equipment has 3 million shares of common stock outstanding 1 million

  Discuss what it means for a firm to have a current ratio

1. what effect would the following actions have on a firms current ratio? assume that net working capital is

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd