Ivan Industries, Inc (I) has $220,000 in net income for the current fiscal year, 130,000 in...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Ivan Industries, Inc (I) has $220,000 in net income for the current fiscal year, 130,000 in current liabilities and total assets of $800,000. I pays 60% of its net income out in dividends. I3's current ratio (CA/CL) is 2.0 and has long-term liabilities (debt) of $200,000. Sales and net income are expected to grow indefinitely at the sustainable growth rate (ROE x (1- payout ratio)). Current assets and current liabilities are expected to vary with sales, but net fixed assets, long-term liabilities and owner's equity do not vary with sales. What is I's net new external financing needed? Ivan Industries, Inc (I) has $220,000 in net income for the current fiscal year, 130,000 in current liabilities and total assets of $800,000. I pays 60% of its net income out in dividends. I3's current ratio (CA/CL) is 2.0 and has long-term liabilities (debt) of $200,000. Sales and net income are expected to grow indefinitely at the sustainable growth rate (ROE x (1- payout ratio)). Current assets and current liabilities are expected to vary with sales, but net fixed assets, long-term liabilities and owner's equity do not vary with sales. What is I's net new external financing needed?
Expert Answer:
Answer rating: 100% (QA)
New External Financing Needed is 8013617 Explanation Equity ... View the full answer
Related Book For
Posted Date:
Students also viewed these finance questions
-
Ivan Industries, Inc (I3 ) has $220,000 in net income for the current fiscal year, 130,000 in current liabilities and total assets of $800,000. I3 pays 60% of its net income out in dividends. I3 s...
-
The partially completed work sheet for the current fiscal year of Sandy's Delivery Service appears below: Required 1. Complete the work sheet. 2. Journalize the adjusting and closing entries (omit...
-
The Doyle Trust reports distributable net income for the year of $100,000 and no income from tax-exempt sources. Under the terms of the trust instrument, the trustee must distribute $20,000 to Roger...
-
The quantity called mass density is the mass per unit volume of a substance. What are the mass densities in SI units of the following objects? a. A 215 cm 3 solid with a mass of 0.0179 kg. b. 95 cm 3...
-
Sterling, Inc. reports the following financial information. Average operating assets............................$3,000,000 Controllable margin...................................$ 630,000 Minimum rate...
-
1. 146.059 rounded to the nearest tenth is a. 146.0 b. 146.1 c. 140 d. 150
-
Stone Brewing Co. is a San Diego brewer that has sold its beers for over two decades. Stone has maintained its trademark and brand from the beginning, registering the STONE mark in 1998. Stone has...
-
Dr. Whitley Avard, a plastic surgeon, had just returned from a conference in which she learned of a new surgical procedure for removing wrinkles around eyes, reducing the time to perform the normal...
-
Consider the following logarithmic equation. log3(x) log.x 8- log(x) log(x) = 1. (i) Find the value(s) of a satisfying in the equation. (ii) Determine for what values of the logarithmic expression on...
-
Your first assignment in your new position as assistant financial analyst at Caledonia Products is to evaluate two new capital- budgeting proposals. Because this is your first assignment, you have...
-
The following figure shows the labor demand curve, LD 1, and labor supply curve, LS1, in a market. A month later, the labor demand curve shifts to LD 2. Wage ($) 45 40 35 30 25 20 15 10 5 0 1 5 1 1 1...
-
How does the 360-degree feedback method address the court's six stress issues depicted in Gerhart and Newman's reading? Since the Brito case, there has been growing evidence that the courts have very...
-
CRM refers to the effective use of all available resources: human, hardware, and information. Other groups routinely working with the cockpit crew, who are involved in decisions required to operate a...
-
following 10words are taken from Brent Staples' essay "Why Race Isn't as "Black" and "White"as We Think." ridiculed surveyor Emancipation slave genetic screening ancestry arbitrary swarming snickered...
-
What role does role-taking, empathy, and perspective-taking play in fostering social understanding and cooperation among individuals occupying different roles within a social system ?
-
Read"Why Race Isn't as"Black"and White"as We Think"by Brent Staples. What can you find out about your own racial,religious,and cultural heritage? Search the Gateway library database: Ancestry Library...
-
What role do structural inequalities play in perpetuating intergenerational cycles of poverty and privilege?
-
When is the indirect pattern appropriate, and what are the benefits of using it?
-
Ajay is a rational, risk averse investor with $ 5,000 to invest for one year. He has decided to invest this amount in a high- technology firm and has narrowed his choice down to either AB Ltd. or XY...
-
Mary is the owner operator of a growing business. Until recently, she has worked hard ( a1), in which case annual net income ( before manager compensation) was $ 10,000, 70% of the time and $ 1,600...
-
QC Ltd. operates under ideal conditions of uncertainty. On January 1, 2015, it purchased a capital asset that will last for two full years and then will be retired with zero salvage. The purchase...
-
V. Zarb, the marketing manager for Maltese Treasures Ltd, is preparing a sales budget for the year ended 30 June 2020. In reviewing the actual sales data for the previous year, the sales and...
-
The following expenses budget has been prepared for Abacus Services for the year ending 30 June 2020. Professional salaries, secretarial wages and training are paid in the quarter in which they are...
-
Bounce Athletics Ltd, which develops and runs athletics training programs for primary schools, has budgeted revenue for the first 6 months of 2020 as follows. All revenue is provided on account and...
Study smarter with the SolutionInn App