What would be your estimate of the additional funds needed

Assignment Help Finance Basics
Reference no: EM131123563

Petal Providers Corporation, described in Problem 5, is interested in estimating its additional financing needed to support a rapid increase in sales next year. Last year, revenues were $1 million; net profit was $50,000; investment in assets was $750,000; payables and accruals were $100,000; and stockholders’ equity at the end of the year was $450,000. The venture did not pay out any dividends and does not expect to pay dividends for the foreseeable future.

A. What would be your estimate of the additional funds needed next year to support a 30 percent increase in sales?

B. How would your answer in Part A change if the expected sales growth were only 15 percent?

Reference no: EM131123563

Questions Cloud

Reflect on the life of the historical figure : How the historical figure was shaped by his time period and environment - Find the perfect anecdote to demonstrate the qualities of the person.
Essay by discussing and contextualizing the topic : 1) If the student's introduction is short, can the student introduce the topic mater of the essay by discussing and contextualizing the topic addressed by the student? (Optional)
Estimate the total cost of manufacturing the tables : Estimate the total cost of manufacturing the tables for Cosmopolitan University. Determine the company's bid price if bids are based upon the total estimated manufacturing cost of a particular project, plus 75 percent.
Planning for a great school year : PLANNING FOR A Great School Year-very fall, children begin the school year with a backpack full bureaucratic barriers in your way. Navigating those obstacles sucof new notebooks, pencils and other school supplies.
What would be your estimate of the additional funds needed : A. What would be your estimate of the additional funds needed next year to support a 30 percent increase in sales? B. How would your answer in Part A change if the expected sales growth were only 15 percent?
Reduce its flight schedule to save money : If its original routes are as illustrated here, which flights can be discontinued to retain service between all pairs of cities (where it may be necessary to combine flights to fly from one city to another)?
Announced his dislike for mexicans and muslims : Donald Trump has announced his dislike for Mexicans and Muslims, immigrants and other minority groups. He wants to institute laws against foreigners who are entering as refugees, and possibly for those who are already in. The White House Press sec..
What types of functions will i be expected to perform : What types of functions will I be expected to perform? Are there any theories that I can use when dealing with the daily tasks of an X-ray department manager?
Describes the religious outlook of the hebrews : Describes the religious outlook of the Hebrews as OPPOSED to Mesopotamian and Egyptian religious outlook BEFORE the so-called "Prophetic Revolution" and the introduction of ethical monotheism?

Reviews

Write a Review

Finance Basics Questions & Answers

  Compute the total expected costs

I am planning going to graduate school in three years. Current estimated cost is $32,000 per year. Those costs are expected to grow every year at the rate of inflation.

  Determine whether the reddings will currently qualify to

determine whether the reddings will currently qualify to refinance their home. is the house eligible for refinancing by

  What is the approximate standard deviation of investment

Assume a project that has the following returns for years 1 to 5: 15%, 4%, -13%, 34%, and 17%. What is the approximate standard deviation of this investment?

  What proportion of wonder customers pay

Wonder Dog Leash Company is examining their accounts receivable patterns. Wonder's customers are offered terms of 1/10 net 30. Of their receivables, $150,000 is current, $75,000 is 1 month overdue, $30,000 is two months overdue, and $20,000 is ove..

  Which would most closely resemble a spider

Describe an ETF and explain how these funds combine the characteristics of open- and closed-end funds. Within the Vanguard family of funds, which would most closely resemble a "Spider"?

  Use the internet to research two publically held health

use the internet to research two publically held health care organizations in your state that you believe would benefit

  Assume annual coupon payments

ABC has issued a bond with the following characteristics: Par: $1,000; Time to maturity: 16 years; Coupon rate: 5%; Assume annual coupon payments. Calculate the price of this bond if the YTM is 5.96%.

  Labor productivity per labor-hour

What is the labor productivity per labor-hour for these tires at Lakefront Manufacturing?

  An investment offers 5700 per year for 10 years with the

an investment offers 5700 per year for 10 years with the first payment occurring one year from now. if the required

  Prepare an income statement for stein book

Stein Books Inc. sold 2,000 finance textbooks for $270 each to High Tuition University in 2013. These books cost $240 to produce. Stein Books spent $12,400 (selling expense) to convince the university to buy its books.

  Discuss the overall purpose people have for investing

Discuss the overall purpose people have for investing

  Define consumer risk. how does it relate to the errors of

Define consumer's risk. How does it relate to the errors of hypothesis testing? What is the symbol for its value?

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