Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

problem: System computers make bulk purchases of small computers, stock them in conveniently located warehouses, & ships them into its chain of retail stores. System's balance sheet as of December 31, 2006, is shown here [millions of dollars]:

Cash

mce_markernbsp; 3.5

Accounts payable

mce_markernbsp; 9.0

Receivable

  26.0

Notes payable

   18.0

Inventories

  58.0

Accruals

     8.5

Total current assets

$87.5

Total current liabilities

$ 35.5

Net fixed assets

  35.0

Mortgage loan

      6.0

 

 

Common stock

    15.0

 

 

Retained earnings

    66.0

Total assets

$122.5

Total liabilities and equity

$122.5

Sales for 2006 were 3.50 million dollar, while net income for the year was 20.5 million dollar. System pay dividends of $4.2 million to common stockholders. The firm is operating at full capacity. Suppose that all ratios remain constant.

[A] If sales are projected to increase by 70 million dollar, or 20%, during 2007.

[B] Estimate System's projected external capital requirement if the increase in sales is expected to be carried out without any expansion of fixed assets.

[C] How much can sales grow above 2006 of $350 million without requiring any additional funds?

 

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M919507

Have any Question? 


Related Questions in Basic Finance

If you were using a full length centerline gage rod to

If you were using a full length, centerline, gage rod to measure DL, how much change would you expect to see at 2508F? 8. What DL from ‘‘before tightening'' would you expect to see at 2508F if you were using ultrasonics ...

Develop a three- to five-page analysis on the projected

Develop a three- to five-page analysis on the projected return on investment for your college education and projected future employment. This analysis will consist of two parts. Part 1: Describe how and why you made the ...

Brian and michelle are married and file a joint tax return

Brian and Michelle are married and file a joint tax return. For 2015, their modified AGI was $50,000. Michelle has a bachelor's degree in history. She wants to become a nurse and is attending community college to earn he ...

In the summer of 2008 at heathrow airport in london

In the summer of 2008, at Heathrow airport in London, Bestofthebest (BB), a private company, offered a lottery to win a Ferrari or 108 comma 000British pounds, equivalent at the time to about $ 216 comma 000. Both the Fe ...

Discuss the financial performance of the starbucks over the

Discuss the financial performance of the Starbucks over the past three years.

1 in what way is the npv consistent with the principle of

1. In what way is the NPV consistent with the principle of shareholder wealth maximization? What happens to the value of a firm if a positive NPV project is accepted? If a negative NPV project is accepted? 2. Can you nam ...

A building owner is evaluating the following four

A building owner is evaluating the following four alternatives for leasing space in an office building for the next five years. Write a two-three page paper and prepare an Excel spreadsheet evaluating each of the four di ...

The centers for disease control and prevention released a

The Centers for Disease Control and Prevention released a report in 1998 that attributed part of the increase in youth smoking in the 1980s to the use of the cartoon character, Joe Camel, in cigarette advertising. Using ...

Consider the following listing for 10-year treasury note

Consider the following listing for 10-year Treasury note futures on the Chicago Board of Trade. One futures contract for Treasury notes = $100,000 face value of 10-year 6% notes. a. If on this day you bought two contract ...

1 when should investors invest in money market securities2

1. When should investors invest in money market securities? 2. List the reasons for investing in Treasury securities (notes and bonds). 3. What are the advantages of inflation-indexed Treasury securities?

  • 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