Q2 Today is December 31, 20X0. Firm T's statement of financial position (in THB) as of...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Q2 Today is December 31, 20X0. Firm T's statement of financial position (in THB) as of today is shown below. Current assets Net non-current assets 100 250 Current liabilities Non-current liabilities 70 90 190 Shareholders' equity 350 Total assets 350 Total liabilities and Shareholders' equity In 20X1, T forecasted that retained earnings would increase by THB35. The firm's dividend payout ratio is constant at 30%. In addition, all assets and current liabilities are assumed to be spontaneous to sales, and the proportions of spontaneous accounts to sales are constant. Finally, other accounts with no additional information are assumed to remain the same. (a) What is the maximum growth rate of sales in 20X1 that can be achieved with no external financing of any kind? (2 points) (b) What is the maximum growth rate of sales in 20X1 that can be achieved with no external and non-spontaneous financing of any kind? (3 points) Q2 Today is December 31, 20X0. Firm T's statement of financial position (in THB) as of today is shown below. Current assets Net non-current assets 100 250 Current liabilities Non-current liabilities 70 90 190 Shareholders' equity 350 Total assets 350 Total liabilities and Shareholders' equity In 20X1, T forecasted that retained earnings would increase by THB35. The firm's dividend payout ratio is constant at 30%. In addition, all assets and current liabilities are assumed to be spontaneous to sales, and the proportions of spontaneous accounts to sales are constant. Finally, other accounts with no additional information are assumed to remain the same. (a) What is the maximum growth rate of sales in 20X1 that can be achieved with no external financing of any kind? (2 points) (b) What is the maximum growth rate of sales in 20X1 that can be achieved with no external and non-spontaneous financing of any kind? (3 points)
Expert Answer:
Answer rating: 100% (QA)
a Sales in 20X1 must be less than or equal to Current ... View the full answer
Related Book For
Posted Date:
Students also viewed these accounting questions
-
The following is the statement of financial position of Alpha Ltd as on 30 June 20X8: The following information is relevant: 1. There are contingent liabilities in respect of (i) A guarantee given to...
-
The 31 December 20X3 statement of financial position shows FVTOCI investments at $ 456,800, and accumulated other comprehensive income at $ 169,000. The investments were purchased in 20X3. Interpret...
-
The following is Mann Corp.'s comparative statement of financial position at December 31, 2017 and 2016, with a column showing the increase (decrease) from 2016 to 2017: Additional information: 1. On...
-
5. Did Danone follow the advice regarding JVs in China mentioned in the list just above? Which aspects did it follow and which did it not? Danone's Wrangle with Wahaha In 1996, In 1996, Danone Group...
-
Because there seems to be a tradeoff between accuracy and confidence for any given sample size, accuracy should be always considered more important than precision. Explain with reasons, why you would...
-
Suppose that the demand function for Japanese cars in the United States is such that annual sales of cars (in thousands of cars) will be 2502P, where P is the price of Japanese cars in thousands of...
-
Upon reviewing recent use of conference rooms at an engineering consulting firm, an industrial engineer determined the following probability distribution for the number of requests for a conference...
-
A survey of 1,700 shoppers were asked, "Does social media influence your purchase decisions?" The results, available at bit.ly/1JVaKoh, indicated that 20.3% of females responded that their purchase...
-
How can mentorship serve as a conduit for the transmission of intergenerational wisdom, facilitating the preservation of institutional memory and the propagation of nuanced decision-making paradigms...
-
In 1879, A.A. Michelson measured the velocity of light in air using a modification of a method proposed by the French physicist Foucault. Twenty of these measurements are in table 6E.27 (the value...
-
The Sky Blue Corporation has the following adjusted trial balance at December 31. Debit Credit $ 1,300 2,700 3,000 3,700 15,500 Cash Accounts Receivable Prepaid Insurance Notes Receivable (long-term)...
-
Fidelity Fund II is considering new stock selection analysis as follows: Stock A Stock B Nikkei (A,B) 6 month Tbill 1- E(R) Portfolio 1 Portfolio 2 Portfolio 3 10% 8% 8% Stock A 40% 30% 60% -0,5 3% 6...
-
Please fill table below Probability Expected return for Bond A Expected return for Bond B 0.05 12.0% 2.0% 0.30 10.0% 3.0% 0.35 9.0% -3.0% 0.20 6.0% 2.0% 0.10 3.0% -4.0% 1 Expected return for A 2...
-
Table 2 shows data on the yearly stock prices of Etisalat, EIB (Emirates Islamic Bank), and DU for 2014 to 2020. A researcher has regressed Etisalat stock price (Y) on EIB (X2) and DU (X3), and the...
-
An investor with mean-variance utility U(E(r), o) = E(r)-o can in three risky assets, i = 1,2,3 and one risk-free asset. The risk-free return is 2%. Risky assets cannot be short sold. The expected...
-
The meeting can be a recorded face-to-face meeting or a visual conference call, where you are to participate in verbal exchanges with your team members. You are to seek clarification of...
-
You have been given the following algorithm. What does it return? Input: Array A [ 1 . . . [ 1 . . . n ] ] Output: ? ? ? ? res 1 1 for i 2 2 to n do if A [ [ i ] > ] > A [ [ res ] ] then res i return...
-
The activities listed in lines 2125 serve primarily as examples of A) Underappreciated dangers B) Intolerable risks C) Medical priorities D) Policy failures
-
Worksheet, Statement of Financial Position, Adjusting and Closing Entries Cooke Company has a fiscal year ending on September 30. Selected data from the September 30 worksheet are presentedbelow....
-
The financial statement of M&S are presented in Appendix 5B or can be accessed at the books companion website, www.wiley.com./college/kiesoifrs. Instructions Refer to these financial statements and...
-
Cash and Accrual Basis Nalezny Corp. maintains its financial records on the cash basis of accounting. Interested in securing a long-term loan from its regular bank, Nalezny Corp. requests you as its...
-
Maximum work is done in compressing air when the compression is: (a) Isothermal compression (b) Adiabatic compression (c) Polytropic compression (d) None of these
-
Isothermal compression efficiency can be achieved by running the compressor: (a) At a very high speed (b) At a very slow speed (c) At an average speed (d) At zero speed
-
Derive the expression of work done by the compressor in isothermal compression, adiabatic compression, and polytropic compression.
Study smarter with the SolutionInn App