A firm currently uses straight line depreciation so that depreciation expense in 2008 will be the same
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Question:
A firm currently uses straight line depreciation so that depreciation expense in 2008 will be the same as in 2007.
Depreciation expense in 2007 was $5,000.
Sales are expected to grow by 30% in 2008.
All net income is paid out in dividends and no new stock issues are planned.
Notes payable at the end of 2007 will be paid off in 2008.
Calculate total assets and additional funds needed for 2008.
Year End 2007
Cash $15,000
Accounts Receivable 20,000
Inventory 35,000
Fixed Assets, Gross 75,000
Accumulated Depreciation 15,000
Fixed Assets, Net 60,000
Accounts Payable $15,000
Notes Payable 25,000
Long-term Debt 30,000
Common Equity $60,000
Posted Date: