Will Jill need any outside capital

Assignment Help Accounting Basics
Reference no: EM133051889

Question - Jill's Wigs Inc. had the following balance sheet last year:

Cash $800 Accounts payable $350 Accounts receivable $450 Accrued wages $150

Inventory $950 Notes payable $2,000 Net fixed assets $34,000 Mortgage $26,500

Common stock $3,200 Retained earnings $4,000

Total assets $36,200 Total liabilities and equity $36,200

Jill has just invented a nonslip wig for cancer patients which she expects will cause sales to double from $10,000 to $20,000, increasing net income to $1,000. She feels that she can handle the increase without adding any fixed assets. Will Jill need any outside capital if she pays no dividends and, if yes, how much?

Reference no: EM133051889

Questions Cloud

How much would they be required to pay out the loan : The interest rate is compounding at 12% annually. How much would they be required to pay out the loan after 12 years
What are business analytics : What are business analytics and why are they important in organizations today? What impact has the internet had on marketing strategy and research and developme
Develop a plan for achieving goal : Let's say you have a great idea for a new product. You'd like to meet with the director of sales and marketing, but for the last couple of weeks, she's been too
Analyzing Big Data : Define and discuss what is Big Data. Discuss at least two applications used in analyzing Big Data and why are those applications used?
Will Jill need any outside capital : Jill has just invented nonslip wig for cancer patients which she expects will cause sales to double from $10,000 to $20,000, Will Jill need any outside capital
What is operating leverage : What is operating leverage, and how does it affect a firm's business risk? Show the operating break-even point if a company has fixed costs of $10,000
Problems with artificial intelligence : What is Artificial Intelligence? What are the problems with artificial intelligence? Explain how a compiler works, give a simple example.
How much is the inventory : The following data refer to Lion Company's ending inventory: How much is the inventory if the lower-of-cost-or-net realizable value rule is applied
What is the fair value of the consideration transferred : Alpha's shares had a market value of $2.70 each, while Beta's shares had a market value of $1.30 each. What is the fair value of the consideration transferred

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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