Question: Answer question fully or will downvote for incomplete. Green Caterpillar Garden Supplies Inc. Balance Sheet For the Year Ended on December 31 Assets Current Assets


Answer question fully or will downvote for incomplete.
Green Caterpillar Garden Supplies Inc. Balance Sheet For the Year Ended on December 31 Assets Current Assets Liabilities Current Liabilities Cash and equivalents Accounts receivable Inventories $150,000 nts payable $250,000 150,000 100,00D 50D,DDD 1,000,000 $1,50D,DD 40D,00D Aocrued liabilities 00D Notes payable 900,000 Total Current Liabilities Total Current Assets Net Fixed Assets: Long-Term Bonds Net plant and equipment (cost minus depreciation) $2,100,DDD Total Debt Common Equity Common stock 80D,ODD 70D,0D0 $1,500,0D $3,000,00D Retained eamings Total Common Equity Total Liabilities and Equity Total Assets $3,0DD,DDD 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, Green Caterpillar Garden Supplies Inc. generated $300,000 net income on sales of $13,000,000. The firm expects sales to increase by 15% this coming year and also expects to maintain its long-run dividend payout ratio of 40%. Suppose Green Catepillar's assets are fully utilized. Using the additional funds needed (AFN) equation to determine the increase in tatal assets that is necessary to support a firm's expected sales, it is projected that Green Catepilla will require in additional assets when a firm grows, some liabilities grow spontaneously alang with sales. Spontaneous liabilities are a source of capital that the firm will generate internally, so they reduce the need for extemal capital. How much of the total increase in assets will be supplied by spontaneous liabilities for Green Catepillar this year? O $69,000 O $65,0Do $54,0DD O $60,000 In addition, Green Caterpillar Garden Supplies Inc. is expected to generate net income this year. The firm will pay out some of its eamings as dividends but will retain the rest for future asset investment. Again, the more a firm generates internally from its operations, the less it will have to raise extemally from the capital markets. Assume that the firm's profit margin and dividend payout ratio are expected to remain constant. Given the preceding information, Green Catepillar expects to generate$ added to its existing retained eamings. (Be sure to round your answer to the nearest whole dollar.) from operations that will be According to the AFN equation and projections for Green Caterpillar Garden Supplies Inc., the firm's AFN is
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