Cold Duck Manufacturing Inc. Balance Sheet For the Year Ended on December 31 Assets Liabilities Current...

 

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Cold Duck Manufacturing Inc. Balance Sheet For the Year Ended on December 31 Assets Liabilities Current Assets: Current Liabilities: Cash and equivalents $150,000 Accounts payable $250,000 Accounts receivable Inventories 400,000 Accrued liabilities 150,000 350,000 Notes payable 100,000 Total Current Assets $900,000 Total Current Labilities $500,000 Net Fixed Assets: Long-Term Bonds 1,000,000 Net plant and equipment (cost minus depreciation) $2,100,000 Total Debt $1,500,000 Common Equity Common stock 800,000 Retained earnings 700,000 Total Common Equity Total Assets $3,000,000 Total Liabilities and Equity $1,500,000 $3,000,000 The firm is currently in the process of forecasting sales, asset requirements, and required funding for the coming year. In the year that just ended, Cold Duck Manufacturing Inc. generated $500,000 net income on sales of $13,500,000. The firm expects sales to Increase by 18% this coming year and also expects to maintain its long-run dividend payout ratio of 30%. Suppose Cold Duck Manufacturing Inc.'s assets are fully utilized. Use the additional funds needed (AFN) equation to determine the increase in total assets that is necessary to support Cold Duck Manufacturing Inc.'s expected sales. (Note: Do not round intermediate calculations.) Cold Duck Manufacturing Inc. Balance Sheet For the Year Ended on December 31 Assets Liabilities Current Assets: Current Liabilities: Cash and equivalents $150,000 Accounts payable $250,000 Accounts receivable Inventories 400,000 Accrued liabilities 150,000 350,000 Notes payable 100,000 Total Current Assets $900,000 Total Current Labilities $500,000 Net Fixed Assets: Long-Term Bonds 1,000,000 Net plant and equipment (cost minus depreciation) $2,100,000 Total Debt $1,500,000 Common Equity Common stock 800,000 Retained earnings 700,000 Total Common Equity Total Assets $3,000,000 Total Liabilities and Equity $1,500,000 $3,000,000 The firm is currently in the process of forecasting sales, asset requirements, and required funding for the coming year. In the year that just ended, Cold Duck Manufacturing Inc. generated $500,000 net income on sales of $13,500,000. The firm expects sales to Increase by 18% this coming year and also expects to maintain its long-run dividend payout ratio of 30%. Suppose Cold Duck Manufacturing Inc.'s assets are fully utilized. Use the additional funds needed (AFN) equation to determine the increase in total assets that is necessary to support Cold Duck Manufacturing Inc.'s expected sales. (Note: Do not round intermediate calculations.)