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Problem: The most recent financial statements for...

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Problem: The most recent financial statements for Throwing Copper Co. are shown here (Do not include the dollar sign ($). Round your answer to 2 decimal places. (e.g., 32.16)): Income Statement: Sales 42000 Costs 28500 Taxable Income 13500 Taxes 4590 Net Income 8910 Balance sheet: Current assets 21000 Fixed Assets 86000 Total 107000 Equity 56000 Long term Debt 51000 Total 107000 Assets and costs are proportional to sales. The company maintains a constant 30 percent dividend payout ratio and a constant debt-equity ratio. The maximum increase in sales that can be sustained assuming no new equity is issued is $____.,Sorry to bother but I received a second message from you but it had the same attachment as you sent in you first response. Regards,Thanks but the question asks for the increase in sales so you need to subtract the original $42,000 from the $47,263.77 which gives you the answer of $5263.77. This is the maximum increase in sales that can be sustained assuming no new equity is issued. Again, appreciate the help.

 

Paper#11941 | Written in 18-Jul-2015

Price : $25
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