Question: BBP Inc with sales of 500 000 has the following balance
BBP, Inc., with sales of $500,000, has the following balance sheet:
The firm earns 15 percent on sales and distributes 25 percent of its earnings. Using the percent of sales, forecast the new balance sheet for sales of $600,000 assuming that cash changes with sales and that the firm is not operating at capacity. Will the firm need external funds? Would your answer be different if the firm distributed all of its earnings?
Answer to relevant QuestionsWith sales of $350,000, MJM, Inc. is operating at capacity but management anticipates that sales will grow 25 percent during the coming year. The company earns 10 percent on sales and distributes 50 percent of earnings to ...Management wants to know if there will be a need for short-term financing in February. Essential information is as follows: a. Estimated sales for January and February are $1 million and $800,000, respectively. b. Sixty ...Given the following information: Annual sales in units....... 30,000 Cost of placing an order..... $60.00 Per-unit carrying costs....... $ 1.50 Existing units of safety stock.... 300 a. What is the EOQ? b. What is the ...If you purchase a $10,000 short-term (90-day) negotiable certificate of deposit for $9,814, what is the discount yield, the simple yield, and the true compound yield? Trade credit may be stated as n60 plus 18 percent on the balance outstanding after two months. What is the cost of this credit?
Post your question