5) A company's balance sheet showed the following amounts as of December 31: Payables Accruals Notes...

 

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5) A company's balance sheet showed the following amounts as of December 31: Payables Accruals Notes Payable Long-term Debt Common Stock Retained Earnings Total Liab & Eq. Cash Receivables Inventory Net Fixed Assets Total Assets $150 450 600 900 $2,100 $300 150 200 350 500 600 Answer Here (Show work in space below) $2,100 Last year, the company's sales were $ 15,000, and it had a profit margin of 10% and a dividend payout ratio of 50%. Fixed assets were being used at 80% capacity but current assets were at their optimal levels. The company expects sales to increase to $ 20,000 next year but the profit margin will fall to 3% while the dividend payout ratio will remain at 50%. Using the percentage of sales method, determine the amount of outside financing the firm will need to support the expected increase in sales. (10 pts) 5) A company's balance sheet showed the following amounts as of December 31: Payables Accruals Notes Payable Long-term Debt Common Stock Retained Earnings Total Liab & Eq. Cash Receivables Inventory Net Fixed Assets Total Assets $150 450 600 900 $2,100 $300 150 200 350 500 600 Answer Here (Show work in space below) $2,100 Last year, the company's sales were $ 15,000, and it had a profit margin of 10% and a dividend payout ratio of 50%. Fixed assets were being used at 80% capacity but current assets were at their optimal levels. The company expects sales to increase to $ 20,000 next year but the profit margin will fall to 3% while the dividend payout ratio will remain at 50%. Using the percentage of sales method, determine the amount of outside financing the firm will need to support the expected increase in sales. (10 pts)

Answer rating: 100% (QA)

To determine the amount of outside financing the firm will need to support the expected increase in sales we can use the percentage of sales method Th... View the full answer