Reference no: EM13729372
The firm earned $7,000 in sales last year while selling 20,000 units. Net Income that same year was $850. At the end of that same year, the Balance Sheet reflected $11,000 in total assets, having $3,500 in debt and $7,500 in equity accounts. The firm expects to sell 25% more units over the coming year, and they expect their profit margin to be the same as last year, and they expect that the Sales/Assets ratio will also remain constant.
What are next year’s sales expected to be (Dollars)?
What will next year’s Net Income be?
What will next year’s Assets be?
If next year’s Debt/Equity ratio is held constant, and no dividends are given out, and no stock or debt are retired, how much in new stock will need to be issued?
If next year’s Debt/Equity ratio is held constant, and no dividends are given out, and no stock or debt are retired, how much in new debt will need to be issued?
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