subject
Business, 22.04.2020 02:19 saharB

The most recent financial statements for Crosby, Inc., follow. Sales for 2018 are projected to grow by 20 percent. Interest expense will remain constant; the tax rate and the dividend payout rate will also remain constant. Costs, other expenses, current assets, fixed assets, and accounts payable increase spontaneously with sales.

CROSBY, INC.

2017 Income Statement

Sales $ 980,760

Costs 792,960

Other expenses 20,060

Earnings before interest and taxes $ 167,740

Interest paid 14,740

Taxable income $ 153,000

Taxes (21%) 32,130

Net income $ 120,870

Dividends $ 39,250

Addition to retained earnings 81,620

CROSBY, INC.

Balance Sheet as of December 31, 2017

Assets Liabilities and Owners’ Equity

Current assets Current liabilities

Cash $ 27,920 Accounts payable $ 71,720

Accounts receivable 42,630 Notes payable 17,620

Inventory 95,910 Total $ 89,340

Total $ 166,460 Long-term debt $ 170,000

Fixed assets Owners’ equity

Net plant and equipment $ 455,980 Common stock and paid-in surplus $ 140,000

Retained earnings 223,100

Total $ 363,100

Total assets $ 622,440 Total liabilities and owners’ equity $ 622,440

If the firm is operating at full capacity and no new debt or equity is issued, what external financing is needed to support the 20 percent growth rate in sales?

ansver
Answers: 3

Other questions on the subject: Business

image
Business, 22.06.2019 00:00, josiesolomonn1605
Which statement about the cost of the options is true? she would save $1,000 by choosing option b. she would save $5,650 by choosing option a. she would save $11,200 by choosing option b. she would save $11,300 by choosing option a.
Answers: 2
image
Business, 22.06.2019 09:20, eelebron0905
Which statement best defines tuition? tuition is federal money awarded to a student. tuition is aid given to a student by an institution. tuition is money borrowed to pay for an education. tuition is the price of attending classes at a school.
Answers: 1
image
Business, 22.06.2019 15:00, AldecuaF10
Beagle autos is known for its affordable and reliable brand of consumer vehicles. because its shareholders expect to see an improved rate of growth in the coming years, beagle's executives have decided to diversify the company's range of products so that at least 40 percent of the firm's revenue is generated by new business units. however, the company's resources, capabilities, and competencies are limited to producing other forms of motorized vehicles, such as motorcycles and all-terrain vehicles (atvs). which type of corporate diversification strategy should beagle pursue?
Answers: 1
image
Business, 22.06.2019 20:50, igtguith
Which of the following statements regarding the southern economy at the end of the nineteenth century is accurate? the south was producing as much cotton as it had before the civil war.
Answers: 3
You know the right answer?
The most recent financial statements for Crosby, Inc., follow. Sales for 2018 are projected to grow...

Questions in other subjects:

Konu
Mathematics, 04.11.2019 02:31