Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

1) At year-end 2013, Wallace Landscaping’s total assets were= $1.8 million and its accounts payable were= $350,000. Sales, which in 2013 were= $2.5 million, are expected to rise by 20% in 2014. Total assets and accounts payable are proportional to sales, and relationship will be sustained. Wallace typically utilizes no current liabilities other than accounts payable. Common stock amounted to $495,000 in 2013, and retained earnings were= $300,000. Wallace has arranged to sell= $105,000 of new common stock in 2014 to meet some of its financing requirements. Remainder of its financing needs will be met by issuing new long-term debt at the end of 2014. (As the debt is added at the ending of year, there will be no extra interest expense due to new debt.) Its profit margin on sales is 7%, and 40% of earnings will be paid out as dividends.

i) Compute Wallace's total long-term debt in 2013?

ii) Compute Wallace's total liabilities in 2013?

iii) How much new long-term debt financing will be needed in 2014? (Hint: AFN - New stock = New long-term debt.)

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M914723

Have any Question? 


Related Questions in Basic Finance

1 what is program evaluation why do program evaluators rely

1. What is program evaluation? Why do program evaluators rely heavily on quasiexperimental designs in their work? 2. What were some of Donald Campbell's contributions to behavioral research?

In a latin square each treatment condition occurs first one

In a Latin square, each treatment condition occurs first one time, second one time, third one time, and so on. Ideally, every possible sequence of two treatments should also occur exactly one time. For example, if two tr ...

What is a pro forma financial statement what is economic

What is a pro forma financial statement? What is economic value added and why do financial managers care about this? Explain what is meant by a balanced scorecard ? If companies in an industry have significant profits an ...

What economic factors play into creating jobs a

What economic factors play into creating jobs? A corporation/business needs to have customers in order to hire workers. How do interest rates affect available jobs?

1 what does it mean to say that a currency trades at a

1. What does it mean to say that a currency trades at a forward premium? 2. Explain how the law of one price establishes a relationship between changes in currency values and inflation rates. 3. Why does purchasing power ...

Beta ltd just paid a dividend of 040 and dividends are paid

Beta Ltd just paid a dividend of $0.40 and dividends are paid once a year. Dividends are expected to grow at 4% p.a. for each of the next five years and then to remain constant forever. Assume a required rate of return o ...

1 what is exchange-rate risk how can exchangerate risk be

1. What is exchange-rate risk? How can exchangerate risk be hedged using forward, futures, and options contracts? 2. How might an investor use forward, futures, and options contracts to speculate on the future value of a ...

Looking back on what we have covered in this class identify

Looking back on what we have covered in this class, identify three areas that you would consider to be your strengths and discuss the following: Why do you feel that you excel in these areas more than others? What have y ...

1 when the federal reserve raises the real interest rate

1. When the Federal Reserve raises the real interest rate, does the economy move up or down the IS curve, and does the value of the output gap increase or decrease? 2. What is the Phillips curve? Why is there an inverse ...

If a firm were contemplating increasing the cash discount

If a firm were contemplating increasing the cash discount it offers its credit customers for early payment, what key variables would need to be considered when quantitatively analyzing this decision? How do the variables ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro