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Orion Corporation




Question;Orion Corporation Balance Sheet Year;Cash $400 Accounts Payable $ 150;Accounts Receivable 250 Accrued Wages 1,000;Inventory 1,200 Notes Payable 500;Net fixed Assets 6,000 Common Stock 3,200;Retained Earnings 3,000;Totals Assets $7,850 Total Liabilities $ Equity $ 7,850;Orion Corporation has just developed a new type of microchip. Orion expects sales will quadruple, from $5,000 in year0 to $20,000 in year1 (next year). This is expected to result in a net income of $4,000 in Year 1. Orion pays 80% of their net income in dividends. Orion has a plenty of excess capacity and believe that they will not need any additional fixed assets to achieve the increase in sales for year1. Will Orion need any additional funding for year1? Will Orion Need any additional funding for YEAR1? If so how much? If not how much excess do they have? Show all work.


Paper#20014 | Written in 18-Jul-2015

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