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1. Use the balance sheet and income statement to...




1. Use the balance sheet and income statement to answer parts a through d below: Cash $14,000 Inventory 38,000 Accounts Receivable 88,000 Net Plant & Equipment 230,000 Total Assets $370,000 Accounts Payable $13,000 Short-term Notes Payable 50,000 Long-term Debt 150,000 Total Liabilities 213,000 Common Stock and Surplus 125,000 Retained Earnings 32,000 Total Owners' Equity 157,000 Total Liabilities & Owners' Equity $370,000 Sales $800,000 Net income $45,000 Calculate the following ratios: a. The current ratio b. The quick ratio c. Long-term debt to equity d. Return on equity using the DuPont method. Be sure to label each component ratio. 2. The most recent financial statements for Valley View Distributors are given below. Assets, short-term liabilities and costs are proportional to sales. Long-term debt is not. Dividends are 20%. Next year's sales are projected to grow by 20 percent. Calculate the external financing needed (EFN). Income statement Balance sheet Sales $3,400 Assets $4,600 Short-term liabilities $692 Long-term Debt 1,748 Costs 2,800 Equity 2,160 Net income $ 600 Total $4,600 Total $4,600 What is the sustainable growth rate in Problem # 2 above?


Paper#3761 | Written in 18-Jul-2015

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