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

Read and study the following experimental designsfor eacha

Read and study the following experimental designs. For each: a. Identify the number of factors and the number of levels within each of the factors. Identify whether each of the factors is between participants or repeated ...

You own 21500 of city steel stock that has a beta of 332

You own $21,500 of City Steel stock that has a beta of 3.32. You also own $38,500 of Rent-N-Co (beta = 1.77) and $20,700 of Lincoln Corporation (beta = -.83). What is the beta of your portfolio?

Finance assignmentfor this assignment perform the

Finance assignment For this assignment, perform the following: 1. Pick an area where you may want to live. It should be a city and state in the United States, but if it is a big city you might want to narrow it down by n ...

If the initial margin for one contract of crude oil was

If the initial margin for one contract of crude oil was $1,000 and the maintenance level was $800, how far would prices need to move against the position in order to trigger a margin call? (Assume only $1,000 on deposit. ...

Accounting statements can be manipulated please try to give

Accounting statements can be manipulated. Please try to give an argument pro and con on this ethical issue. Any actual public examples you would like to cite would be most appreciated by all. Scenario: Many brokerage fir ...

1 what do economists mean by a bubble why do many

1. What do economists mean by a "bubble"? Why do many economists believe that there was a housing bubble in the United States between 2000 and 2005? 2. By the 2000s, what significant changes had taken place in the mortga ...

1 in addition to the key words that were defined in the

1. In addition to the key words that were defined in the text, you should be able to define the following terms, which also appear in the Glossary: replication pseudoscience 2. Describe one way in which understanding res ...

1 suppose that in the lasim problem the transport cost

1. Suppose that in the Lasim problem, the transport cost between the production site and the warehouse is not negligible. In this case, the inventory replenishment of product A-124 has a transport cost of € 25. Determine ...

Explain the advantages and disadvantages to a call buyer of

Explain the advantages and disadvantages to a call buyer of closing out a position prior to expiration rather than holding it all the way until expiration? Suppose that one is considering buying a call at a particular ex ...

A city built a new parking garage in a business district

A city built a new parking garage in a business district. For a random sample of 100 days, daily fees collected averaged $1,800, with a standard deviation of $500. Construct a 90% confidence interval estimate of the mean ...

  • 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

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

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen