Midwest Mining (MWM) expects its sales to grow by 20 percent next year. Last year, when the

Question:

Midwest Mining (MWM) expects its sales to grow by 20 percent next year. Last year, when the firm was operating at full capacity, MWM generated sales equal to $250,000 with assets of $800,000. MWM’s current balance sheet shows that accounts payable and accruals are $150,000, notes payable are $25,000, long-term debt is $100,000, common stock is $450,000, and retained earnings are $75,000. Next year, MWM’s net profit margin is expected to be the same as this past year, 5 percent, and the company plans to continue to pay 60 percent of earnings as dividends. Estimate MWM’s additional funds needed (AFN) for next year.

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...

Fantastic news! We've Found the answer you've been seeking!