Business, 01.02.2021 23:00 erinloth123

Rossiter's currently has total assets of $203,000, long-term debt of $78,400, and current liabilities of $36,700. The dividend payout ratio is 25 percent and the profit margin is 5.8 percent. Assume all assets and current liabilities change spontaneously with sales and the firm is currently operating at full capacity. What is the external financing need if the current sales of $185,000 are projected to increase by 5 percent

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Answer from: LTLICKME7437

-$134.88

Explanation:

Calculation for the external financing need

First step is to calculate the Projected total assets

Projected total assets = 1.05 × $203,000

Projected total assets = $213,150

Second step is to calculate Projected current liabilities

Projected current liabilities = 1.05 × $36,700

Projected current liabilities = $38,535

Third step is to calculate Current stockholders' equity

Current stockholders' equity = $203,000 - $36,700 - $78,400

Current stockholders' equity= $87,900

Fourth step is to calculate Projected shareholders equity

Projected shareholders equity = $87,900 + (1.05 × $185,000 × 0.058 × (1 - 0.25))

Projected shareholders equity = $96,349.88

Now let calculate the external financing need

External financing need = $213,150 - $38,535 - $78,400 - $96,349.88

External financing need= -$134.88

Therefore External financing need will be -$134.88

Answer from: Quest

1 all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know

Answer from: Quest

It wil be manufacturing industrie, (a) hope this you.

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Rossiter's currently has total assets of $203,000, long-term debt of $78,400, and current liabilitie...