Business, 08.04.2020 04:59 vbui8390

You are the owner of a small business which has the following balance sheet: Current assets $ 5,000 Accounts payable $ 1,000 Net fixed assets 10,000 Accruals 1,000 Long-term debt 5,000 Common equity 8,000 Total assets $15,000 Total $15,000 Fixed and current assets are fully utilized, and the sales/assets and sales/current liabilities ratios will remain constant. Next year you expect sales to increase by 50 percent. You also expect to retain $2,000 of next year's earnings within the firm. What is next year's additional external funding requirement, i. e., what is your firm's AFN?

A. $4,500
B. No additional funds are required.
C. $3,500
D. $5,500

Answers: 2

Show answers

Another question on Business

Business, 21.06.2019 19:30

Which of the following is an example of the use of fiscal policy by the u.s. government? a. congress makes it illegal for the police union to go on strike. b. the federal reserve bank lowers the interest rate on loans to corporations. c. the department of transportation increases spending on highway repairs. d. the supreme court rules that unions have the right to collective bargaining. 2b2t

Answers: 1

Answer

Business, 22.06.2019 10:30

On july 1, oura corp. made a sale of $ 450,000 to stratus, inc. on account. terms of the sale were 2/10, n/30. stratus makes payment on july 9. oura uses the net method when accounting for sales discounts. ignore cost of goods sold and the reduction of inventory. a. prepare all oura's journal entries. b. what net sales does oura report?

Answers: 2

Answer

Business, 22.06.2019 20:00

Ajax corp's sales last year were $435,000, its operating costs were $362,500, and its interest charges were $12,500. what was the firm's times-interest-earned (tie) ratio? a. 4.72b. 4.97c. 5.23d. 5.51e. 5.80

Answers: 1

Answer

Business, 22.06.2019 20:00

The master manufacturing company has just announced a tender offer for its own common stock. master is offering to buy up to 100% of the company's stock at $20 per share contingent on at least 64% of the outstanding shares being tendered. after the announcement of the offer, the stock closed on the nyse up 2.50 at $18.75. a customer has 100 shares of master stock in his cash account. the customer tells you that he wishes to "cash out" his position. you should recommend that the customer:

Answers: 2

Answer

You know the right answer?

You are the owner of a small business which has the following balance sheet: Current assets $ 5,000...

Questions