Owen’s Electronics has nine operating plants in seven southwestern states. Sales for last year were $100 million, and the balance sheet at year-end is similar in percentage of sales to that of previous years (and this will continue in the future). All assets (including fixed assets) and current liabilities will vary directly with sales. The firm is working at full capacity. Balance Sheet (in $ millions) Assets Liabilities and Stockholders' Equity Cash $ 8 Accounts payable $ 20 Accounts receivable 23 Accrued wages 4 Inventory 25 Accrued taxes 10 Current assets $ 56 Current liabilities $ 34 Fixed assets 44 Notes payable 14 Common stock 18 Retained earnings 34 Total assets $ 100 Total liabilities and stockholders' equity $ 100 Owen’s Electronics has an aftertax profit margin of 7 percent and a dividend payout ratio of 45 percent. If sales grow by 20 percent next year, determine how many dollars of new funds are needed to finance the growth. (Do not round intermediate calculations. Enter your answer in dollars, not millions, (e.g., $1,234,567).)

Owen’s Electronics has nine operating plants in seven southwestern states. Sales for last year were $100 million, and the balance sheet at year-end is similar in percentage of sales to that of previous years (and this will continue in the future). All assets (including fixed assets) and current liabilities will vary directly with sales. The firm is working at full capacity. Balance Sheet (in $ millions) Assets Liabilities and Stockholders' Equity Cash $ 8 Accounts payable $ 20 Accounts receivable 23 Accrued wages 4 Inventory 25 Accrued taxes 10 Current assets $ 56 Current liabilities $ 34 Fixed assets 44 Notes payable 14 Common stock 18 Retained earnings 34 Total assets $ 100 Total liabilities and stockholders' equity $ 100 Owen’s Electronics has an aftertax profit margin of 7 percent and a dividend payout ratio of 45 percent. If sales grow by 20 percent next year, determine how many dollars of new funds are needed to finance the growth. (Do not round intermediate calculations. Enter your answer in dollars, not millions, (e.g., $1,234,567).)

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter4: Financial Planning And Forecasting

Section: Chapter Questions

Problem 7P

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Owen’s Electronics has nine operating plants in seven southwestern states. Sales for last year were $100 million, and the balance sheet at year-end is similar in percentage of sales to that of previous years (and this will continue in the future). All assets (including fixed assets) and current liabilities will vary directly with sales. The firm is working at full capacity. Balance Sheet(in $ millions) Assets Liabilities and Stockholders' Equity Cash $ 7 Accounts payable $ 20 Accounts receivable 25 Accrued wages 7 Inventory 28 Accrued taxes 13 Current assets $ 60 Current liabilities $ 40 Fixed assets 45 Notes payable 15 Common stock 20 Retained earnings 30 Total assets $ 105 Total liabilities and stockholders' equity $ 105 Owen’s Electronics has an aftertax profit margin of 10 percent and a dividend payout ratio of 45 percent. If sales grow by 20 percent next year, determine how many dollars of new funds are needed to…
Owen’s Electronics has nine operating plants in seven southwestern states. Sales for last year were $100 million, and the balance sheet at year-end is similar in percentage of sales to that of previous years (and this will continue in the future). All assets (including fixed assets) and current liabilities will vary directly with sales. The firm is working at full capacity. Balance Sheet(in $ millions) Assets Liabilities and Stockholders' Equity Cash $ 11 Accounts payable $ 23 Accounts receivable 28 Accrued wages 10 Inventory 29 Accrued taxes 13 Current assets $ 68 Current liabilities $ 46 Fixed assets 46 Notes payable 18 Common stock 20 Retained earnings 30 Total assets $ 114 Total liabilities and stockholders' equity $ 114 Owen’s Electronics has an aftertax profit margin of 10 percent and a dividend payout ratio of 50 percent. If sales grow by 30 percent next year, determine how many dollars of new funds are needed to…
Owen's Electronics has nine operating plants in seven southwestern states. Sales for last year were $100 million, and the balance sheet at year-end is similar in percentage of sales to that of previous years (and this will continue in the future). All assets (including fixed assets) and current liabilities will vary directly with sales. The firm is working at full capacity. Balance Sheet (in $ millions) Liabilities and Stockholders' Equity Assets $ 20 Accounts payable Accrued wages Cash 8. Accounts receivable 23 4 Inventory 25 Accrued taxes 10 $ 34 $ 56 Notes payable Current assets Current liabilities Fixed assets 44 14 Common stock 18 Retained earnings 34 $100 Total liabilities and stockholders' equity $ 100 Total assets Owen's Electronics has an aftertax profit margin of 7 percent and a dividend payout ratio of 45 percent. If sales grow by 20 percent next year, determine how many dollars of new funds are needed to finance the growth. (Do not round intermediate calculations. Enter…
Owen's Electronics has nine operating plants in seven southwestern states, Sales for last year were $100 million, and the balance sheet at year-end is similar in percentage of sales to that of previous years (and this will continue in the future). All assets (including fixed assets) and current liabilities will vary directly with sales. The firm is working at full capacity. Cash Accounts receivable Inventory Current assets Fixed assets Assets Total #ssets New funds Balance Sheet (in 3 millions) 56 Accounts payable ****1 Liabilities and Stockholders Equity 24 Accrued wages 27 Accrued taxes $ 57 Notes payable Common stock Retained earnings $ 101 Total liabilities and stockholders' equity Owen's Electronics has an aftertax profit margin of 9 percent and a dividend payout ratio of 40 percent. If sales grow by 15 percent next year, determine how many dollars of new funds are needed to finance the growth. Note: Do not round intermediate calculations. Enter your answer in dollars, not…
Owen’s Electronics has nine operating plants in seven southwestern states. Sales for last year were $100 million, and the balance sheet at year-end is similar in percentage of sales to that of previous years (and this will continue in the future). All assets (including fixed assets) and current liabilities will vary directly with sales. The firm is working at full capacity. Balance Sheet (in $ millions) Assets Liabilities and Stockholders' Equity Cash $ 15 Accounts payable $ 17 Accounts receivable 31 Accrued wages 3 Inventory 32 Accrued taxes 12 Current assets $ 78 Current liabilities $ 32 Fixed assets 46 Notes payable 15 Common stock 18 Retained earnings 59 Total assets $ 124 Total liabilities and stockholders' equity $ 124 Owen’s Electronics has an aftertax profit margin of 8 percent and a dividend payout ratio of 45 percent. If sales grow by 20 percent next year, determine how many dollars of new funds are needed to finance the growth. (Do not round intermediate calculations. Enter…
wen’s Electronics has nine operating plants in seven southwestern states. Sales for last year were $100 million, and the balance sheet at year-end is similar in percentage of sales to that of previous years (and this will continue in the future). All assets (including fixed assets) and current liabilities will vary directly with sales. The firm is working at full capacity. Balance Sheet(in $ millions) Assets Liabilities and Stockholders' Equity Cash $ 5 Accounts payable $ 18 Accounts receivable 23 Accrued wages 5 Inventory 26 Accrued taxes 11 Current assets $ 54 Current liabilities $ 34 Fixed assets 43 Notes payable 13 Common stock 18 Retained earnings 32 Total assets $ 97 Total liabilities and stockholders' equity $ 97 Owen’s Electronics has an aftertax profit margin of 8 percent and a dividend payout ratio of 30 percent. If sales grow by 15 percent next year, determine how many dollars of new funds are needed to finance…
Owen's Electronics has nine operating plants in seven southwestern states. Sales for last year were $100 million, and the balance sheet at year-end is similar in percentage of sales to that of previous years (and this will continue in the future). All assets (including fixed assets) and current liabilities will vary directly with sales. The firm is working at full capacity. Assets Cash Accounts receivable Inventory Current assets Fixed assets Total assets Balance Sheet (in $ millions) Liabilities and Stockholders' Equity $ 2 Accounts payable 22 24 $ 48 43 Accrued wages Accrued taxes Current liabilities Notes payable Common stock Retained earnings $91 Total liabilities and stockholders' equity $ 16 4 10 $30 Answer is complete but not entirely correct. New funds $ 8,075,000 > 12 17 32 $ 91 Owen's Electronics has an aftertax profit margin of 6 percent and a dividend payout ratio of 45 percent. If sales grow by 20 percent next year, determine how many dollars of new funds are needed to…
Owen's Electronics has nine operating plants in seven southwestern states. Sales for last year were $100 million, and the balance sheet at year-end is similar in percentage of sales to that of previous years (and this will continue in the future). All assets (including fixed assets) and current liabilities will vary directly with sales. The firm is working at full capacity. Assets Cash Accounts receivable Inventory Current assets Fixed assets Total assets New funds $7 25 28 $ 60 45 Balance Sheet (in $ millions) $ 105 Liabilities and Stockholders' Equity Accounts payable Accrued wages Accrued taxes Current liabilities Notes payable Common stock Retained earnings Total liabilities and stockholders' equity X Answer is complete but not entirely correct. $ 11,900,000 X $ 20 7 13 $ 40 Owen's Electronics has an aftertax profit margin of 10 percent and a dividend payout ratio of 45 percent. If sales grow by 20 percent next year, determine how many dollars of new funds are needed to finance the…
Owen's Electronics has nine operating plants in seven southwestern states. Sales for last year were $100 million, and the balance sheet at year-end is similar in percentage of sales to that of previous years (and this will continue in the future). All assets (including fixed assets) and current liabilities will vary directly with sales. The firm is working at full capacity. Cash Accounts receivable Inventory Current assets Fixed assets Total assets New funds Assets E 122 TOLCIE E S Balance Sheet (in $ millions) E $ 12 27 28 $ 67 45 N Owen's Electronics has an aftertax profit margin of percent and a dividend payout ratio of 40 percent. If sales grow by 30 percent next year, determine how many dollars of new funds are needed to finance the growth. Note: Do not round intermediate calculations. Enter your answer in dollars, not millions, (e.g., $1,234,567). $ 112 Liabilities and Stockholders' Equity Accounts payable Accrued wages Accrued taxes Current liabilities Notes payable Common stock…
Owen’s Electronics has nine operating plants in seven southwestern states. Sales for last year were $100 million, and the balance sheet at year-end is similar in percentage of sales to that of previous years (and this will continue in the future). All assets (including fixed assets) and current liabilities will vary directly with sales. Balance Sheet(in $ millions) Assets Liabilities and Stockholders' Equity Cash $ 5 Accounts payable $ 18 Accounts receivable 23 Accrued wages 5 Inventory 26 Accrued taxes 11 Current assets $ 54 Current liabilities $ 34 Fixed assets 43 Notes payable 13 Common stock 18 Retained earnings 32 Total assets $ 97 Total liabilities and stockholders' equity $ 97 Owen’s Electronics has an aftertax profit margin of 8 percent and a dividend payout ratio of 30 percent. If sales grow by 15 percent next year, determine how many dollars of new funds are needed to finance the growth. (Do not round intermediate…
Carter Paint Company has plants in four provinces. Sales last year were $100 million, and the balance sheet at year-end is similar in percent of sales to that of previous years (and this will continue in the future). All assets and current liabilities will vary directly with sales. Assume the firm is already using capital assets at full capacity. Cash Accounts receivable Inventory Current assets Capital assets Total assets Assets Cash Accounts receivable Inventory Current assets Capital Assets Total assets Assets Current ratio Total debt assets ta $7 13 18 38 38 $76 $ Year 1 Balance Sheet (in $ millions) Accounts payable Accrued wages Accrued taxes X Liabilities and shareholders' Equity Current liabilities Long-term debt Common stock Retained earnings Total liabilities and shareholders' equity The firm has an aftertax profit margin of 6 percent and a dividend payout ratio of 30 percent. a. If sales grow by 10 percent next year, determine how many dollars of new funds are needed to…
Carter Paint Company has plants in four provinces. Sales last year were $100 million, and the balance sheet year-end is similar in percent of sales to that of previous years (and this will continue in the future). All assets and current liabilities will vary directly with sales. Assume the firm is already using capital assets at full capacity. Assets Cash Accounts receivable Inventory Current assets Capital assets Total assets Assets (Click to select) (Click to select) (Click to select) Current assets (Click to select) Total assets The firm has an aftertax profit margin of 9 percent and a dividend payout ratio of 35 percent. a. If sales grow by 20 percent next year, determine how many dollars of new are needed to finance the expansion. (Do not round intermediate calculations. Enter the answer in millions. Round the final answer to 3 decimal places.) The firm needs $ Current ratio Total debt / assets b. Prepare a pro forma balance sheet with any financing adjustment made to long-term…

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Balance Sheet (in $ millions)
Assets	Liabilities and Stockholders' Equity
Cash	$	8	Accounts payable	$	20
Accounts receivable		23	Accrued wages		4
Inventory		25	Accrued taxes		10
Current assets	$	56	Current liabilities	$	34
Fixed assets		44	Notes payable		14
			Common stock		18
			Retained earnings		34
Total assets	$	100	Total liabilities and stockholders' equity	$	100