A firm's balance sheet as of December 31 is shown below. The firm's sales for the...
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A firm's balance sheet as of December 31 is shown below. The firm's sales for the year were P1,000,000,000, and its after- tax margin on sales was 5%. Sales are expected to increase next year to P1,300,000,000, and it plans to distribute 50% of its net profits to stockholders. Based on the percentage-of-sales method, the amount of funds that must be obtained externally by borrowing or by selling new stock is Assets Cash Receivables Inventories Net fixed assets (P millions) P 50 130 150 Liabilities Accounts payable Accrued taxes & wages Mortgage bonds 220 Common stock Retained earnings (P millions) P 30 40 130 150 200 A firm's balance sheet as of December 31 is shown below. The firm's sales for the year were P1,000,000,000, and its after- tax margin on sales was 5%. Sales are expected to increase next year to P1,300,000,000, and it plans to distribute 50% of its net profits to stockholders. Based on the percentage-of-sales method, the amount of funds that must be obtained externally by borrowing or by selling new stock is Assets Cash Receivables Inventories Net fixed assets (P millions) P 50 130 150 Liabilities Accounts payable Accrued taxes & wages Mortgage bonds 220 Common stock Retained earnings (P millions) P 30 40 130 150 200
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Determine the amount of funds that must be obtained externally by borrowing or by selling new stock ... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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