BHS Incorporated determines that sales will rise from $400,000 to $550,000 next year. Spontaneous assets are 60% of sales, and spontaneous liabilities are 30% of sales. BHS has an 8% profit margin and a 40% dividend payout ratio. What is the level of required new funds?
Q: On December 31, 2025, Tamarisk Inc. rendered services to Beghun Corporation at an agreed price of…
A: The question is based on the concept of Financial Accounting. Whenever we use the effective interest…
Q: Mark’s Consulting experienced the following transactions for Year 1, its first year of operations,…
A: Statement of cash flow: It implies to one of the financial statements of the company that shows all…
Q: Activity based costing is likely a more advantageous costing methold versus traditonal costing, to…
A: The costing uses different method in order to consider all the cost that are involve the…
Q: Howell Petroleum, Incorporated, is trying to evaluate a generation project with the following cash…
A: •Calculation of NPV: = Present value of cash inflow - Present value of cash outflow = 36,990,000…
Q: 1. What is the current Ratio assuming company A has the following data in its balance sheet?…
A: Hi student Since there are multiple questions, we will answer only first question. Ratio analysis…
Q: Ivanhoe Company uses a job order cost system. On May 1, the company has a balance in Work in Process…
A: Golden Rules of Accounting: Account Debit Credit Personal Accounts The Receiver The…
Q: Assets Liabilities Stock Year One $50,000 $25,000 $10,000 $15,000 Retained Earnings Suppose in year…
A: The accounting equation states that assets equals to sum of liabilities and shareholders equity. The…
Q: On January 1, Rogers (lessee) signs a three-year lease for machinery that is accounted for as a…
A: When entering into a finance lease, the lessee should immediately acknowledge the lease as both an…
Q: The Silver Center (TSC) produces cups and platters. TSC purchases silver and other metals that are…
A: JOINT PRODUCT Joint products are the result of utilization of the same raw material and same…
Q: Harold McWilliams owns and manages a general merchandise store in a rural area of Virginia. Harold…
A: A breakeven point is the production level at which total production revenue equals total production…
Q: 1. SAN JUAN becomes subject to VAT for the first time. The following data are available for SAN JUAN…
A: ANSWER:- VAT payable (excess VAT input) =P 10,576 EXPLANATION:- To calculate the VAT payable, we…
Q: In which of the following funds is it appropriate to record depreciation of capital assets?
A: The Capital Projects Fund is designed to account for the acquisition, construction, or improvement…
Q: 6-29 Process Costing in Sugar Manufacturing The food-processing industry, like most process…
A: Process costing is the costing technique used by companies for mass-producing a single product or…
Q: Manufacturing Overhead consists of which of the following costs: (check all that apply) Utilities in…
A: The manufacturing overhead includes the indirect costs of production such as indirect materials,…
Q: 13. The following information are taken from the actuarial valuation report for an entity's defined…
A: The defined benefit pension plan is a kind of pension plan and the main advantage of this plan is…
Q: How much is the deductible interest expense?
A: As per the Philippians Law, Any Person can get a total deduction of total Interest Expense upto the…
Q: On January 1, 2020 Sams Company granted Jim Norman, an employee, an option to buy 300 shares of Sams…
A: A transaction is recorded in the company's financial records using a journal entry. Journal entries…
Q: Jordan Sports Inc. has labor costs and overhead totaling $2.6 million during a given period. The…
A: Total manufacturing cost for the period is the total manufacturing cost added during the period…
Q: 1. Cute Camel is able to achieve this level of increased sales, but its interest costs increase from…
A: An income statement displays the revenues, costs, and profitability of a business over time. It is…
Q: DESCRIPTION OF THE BUSINESS Sophia LeBron’s vast experience in interior design provided her the…
A: Answer: Please fallow the answer below: You appear to have provided a detailed description of a…
Q: Instructions: analyze the transaction using Copy Clear Format post it to the ledger Income…
A: Analysis of Accounting Transaction Studying and assessing the financial data associated with a…
Q: Cash Accounts receivable. Teaching supplies Prepaid insurance Prepaid rent Professional library…
A: Income Statement. Revenue Tuition 104516 Training 38937 Total Revenue 143453…
Q: calculate prime cost from the following Stock of raw material on 1st January, 2020 Rs 40,000 Stock…
A: Prime cost: Prime cost includes direct expenses related to the Manufacturing of goods. Major…
Q: It has been suggested that published accounting statements should attempt to be relevant,…
A: Relevance: In accounting, relevance refers to the quality of accounting information that makes it…
Q: 17. VAST Corporation incurred the following expenses. Which of the following is non-deductible? a.…
A: Some of expenses are deductible and some are not deductible. Deductible expenses reduces the income…
Q: 6. Rich Company leased equipment to Snead Company on July 1, 2033, for a one-year period expiring…
A: Income (expense) before income taxes=Total Revenues-Total Expenses
Q: For the Year Ended December 31, 2023 Net sales $132,000 Cost of goods sold 78,000 Gross profit…
A: The cash flow statement is prepared to record the cash flow from various activities of the business.…
Q: Compute the following if the corporation avails of the 40% Optional Standard Deduction: 1. Taxable…
A: It has been given in the question that IYA, Incorporation is a domestic corporation and it has been…
Q: Account Balances as of December 31, Year 2 Accounts receivable Accounts payable Salaries payable…
A: Closing entries are those which are reported in the books in order to close the temporary accounts…
Q: 1. Shown below are the account balances for Barnie Corp. for their year-end December 31, 2022: $…
A: Lets understand the basics. There various stages through which statement of financial position gets…
Q: Pender Corp. paid $330,000 for a 30% interest in Saltspring Limited on January 1, Year 6. During…
A: INTRODUCTION: A journal is a book that contains the first documentation of all business…
Q: The lower the revenue per employee, a. the more efficient the company is in generating revenue from…
A: Revenue per employee is the average money the employees generated for the store. It is the…
Q: Dawson Company manufactures two products, Regular and Deluxe. Overhead costs consist of $2,500,000…
A: Computation of the amount of total overhead for Dawson Company : Machining costs $2,500,000…
Q: Alpha Company manufactures computers. On July 1, Alpha had $74,000 of materials in inventory. During…
A: The cost of direct materials used can be determined as: Beginning amount of raw materials Add:…
Q: Question 4: Us the information below to answer the following questions AR, Net of allowance for…
A: The journal entries are prepared to keep the record of day to day transactions of the business on…
Q: equired: The adjustments to the ledger accounts for rent and business rates for the year to 31…
A: Given in the question: Accrued rent as on August 31, 2015 = 400 The prepaid business rates = 300 It…
Q: Question 2 XYZ Company issues 2,000 convertible preference shares that have a par value of €1 per…
A: JOURNAL ENTRIES Journal Entry is the First stage of Accounting Process. Journal Entry is the Process…
Q: Sam and Diane are completing their federal income taxes for the year and have identified the amounts…
A: The formula for deduction: The deduction is calculated by using the following formula: = Medical…
Q: You are planning on buying a new house and want to make sure you can afford the monthly payments.…
A: Equal monthly payment refers to the stream of equal payment over the period when the whole loan gets…
Q: their taxable income
A: QBID or Qualified Business Income Deduction is a provision in the Tax Cuts and Jobs Act of 2017. It…
Q: Friendly Tests Inc. is a commercial testing lab, performing a variety of lab tests for hospitals in…
A: Answer: NPV is the difference between the current cashflows vs the present value of the future…
Q: You have recently been appointed as the cost accountant for Carla Vista Hair Co. Ltd., a…
A: Answer: In the above question part a requirement is not given Properly: I have answered only for…
Q: Debtors were shown in balance sheet at Rs 80,000. Debtors were realised at a discount of 7%. The…
A: INTRODUCTION: The revenue recognition principle or the realization idea in accounting is a mechanism…
Q: What is transferred in cost
A: INTRODUCTION: Cost accounting is a type of managerial accounting that tries to capture a company's…
Q: It has been suggested that published accounting statements should attempt to be relevant,…
A: Relevance Relevance in accounting refers to the usefulness of the reported information. Relevant…
Q: What is a job order cost system? Describe a situation in which you would use job order cost…
A: Costing systems adopted by manufacturing entities differ according to their nature of operations. It…
Q: Which of the following is needed for a fiduciary relationship to exist?
A: A fiduciary relationship exists when one person or entity holds the assets of another person or…
Q: Two different companies, Quick Cleaners and JunkTrader entered into the following inventory…
A: A perpetual inventory system is a type of inventory management system where the inventory is…
Q: L Which statement is correct in comparing capital leases to operating leases? a) A capital lease…
A: ANSWER:- Correct option (d) d) A capital lease will have a higher debt-to-equity ratio compared to…
Q: Discuss the three common Valuation Approaches, their applications, and give an example of Valuation…
A: In accounting we often use accounting figures and numbers to value a business. Different methods are…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Ogier Incorporated currently has $800 million in sales, which are projected to grow by 10% in Year 1 and by 5% in Year 2. Its operating profitability ratio (OP) is 10%, and its capital requirement ratio (CR) is 80%? What are the projected sales in Years 1 and 2? What are the projected amounts of net operating profit after taxes (NOPAT) for Years 1 and 2? What are the projected amounts of total net operating capital (OpCap) for Years 1 and 2? What is the projected FCF for Year 2?A firm's current profits are $700,000. These profits are expected to grow indefinitely at a constant annual rate of 3 percent. If the firm's opportunity cost of funds is 5 percent, determine the value of the firm: Instructions: Enter your responses rounded to two decimal places. a. The instant before it pays out current profits as dividends. million b. The instant after it pays out current profits as dividends. millionA firm's current profits are $450,000. These profits are expected to grow indefinitely at a constant annual rate of 3 percent. If the firm's opportunity cost of funds is 6 percent, determine the value of the firm: Instructions: Round your responses to 2 decimal places. a. The instant before it pays out current profits as dividends. $ million b. The instant after it pays out current profits as dividends. $ million
- Puckett Products is planning for $3 million in capital expenditures next year. Puckett's target capital structure consists of 60% debt and 40% equity. If net income next year is $2 million and Puckett follows a residual distribution policy with all distributions as dividends, what will be its dividend payout ratio? Round your answer to two decimal places.1.Dominique Exports Inc. determines that sales will rise from $400,000 to $600,000 next year. Spontaneous assets are 60% of sales and spontaneous liabilities are 25% of sales. The company has a 12% profit margin and a 30% dividend payout ratio. Calculate the level of Required New Funds. Give answer fast(B) Based on the following information, how much does the company need in external funds for the upcoming fiscal year? The company has Sales $ 5,700, Costs 4,200, Current assets 3,900, Fixed assets 8,100, Current liabilities 2,200, Long-term debt 3,750, and Equity 6,050. Sales increase 15% for the upcoming fiscal year. Payout ratio is 40% and Tax rate is 34%.
- Phosfranc Inc. is valuing the equity of a company using the free cash flow from equity, FCFE, approach and has estimated that the FCFE in the next three years will be $6.25, $7.70, and $8.36 million respectively. Beginning in year 4, the company expects the cash flows to increase at a rate of 4 percent per year for the indefinite future. It is estimated that the cost of equity is 12 percent. What is the value of equity in this company? (Do not round intermediate computations. Round final answer to the nearest million.) A) $77 million B) $95 million C) $109 million D) $60 millionGalehouse Gas Station Inc. expects sales to increase from$1,550,000 to $1750,000 next year. Galehouse believes that net assets ( Assets - Liabilities) will represent 50 mpercent of sales. His firm has an 8 percent return on sales and pays 45 percent of profits out as dividens. A. What effect will this growth have on funds? B. If the dividen payout is only 25 percent, what effect will this growth have on the funds?Compute the additional funds needed. JHOPE "I am your hope" Company has 10% net profit margin on sales in previous years and expects to maintain the same next year. The Business is expected to increase its sales level from P1,000,000 to P1 255 000. The percentages of current sales and current liabilities that have direct relationship with sales are 60% and 35%, respectively. Out of the total earnings at are expected to be realized next year, 25% will be retumed to the shareholders in the form of dividends. Compute the following: 5. Projected increase in current assets 6. Spontaneous increase in current liabilities 7. Increase in retained earings 8. Additional fund needed.
- A firm’s current profits are P550,000. These profits are expected to grow indefinitely at a constant annual rate of 5 percent. If the firm’s opportunity cost of funds is 8 percent, determine the value of the firm: a. The instant before it pays out current profits as dividends: b. The instant after it pays out current profits as dividends.Strategic system Inc. expects to have net income of 800000 during the next year. Its target and current capital structure are 40 percent debt and 60 percent equity. The director of capital budgeting has determined that the optimal capital budget for next year is 1.2 million. If strategic uses residual dividend model to determine next year dividend payout. What is the expected payout ratio?Given the following information, if the firm wants to grow sales by 70% next year, and it is operating at 80% capacity, what is the additional funds using the AFN equation? Liabilities and Equity Assets 2023 Cash & sec. 100 Accounts payable & accruals Accounts rec. 300 Notes payable 2023 250 200 Inventories 500 Total CA 900 Total CL 450 L-T debt 600 Common stock 300 Net fixed Assets 700 Retained Earnings 250 Total assets 1600 Total claims 1600 Income Statement 2023 Sales 3000 Less: COGS (60%) 1800 SGA costs (20%) 600 EBIT 600 Interest (at 10%) 80 EBT 520 Taxes (40%) 208 Net income 312 Dividends (20%) 62 Add'n to RE 250 POR 20%
