The most recent financial statements for Kitsilano Inc. are shown here: Statement of Comprehensive Income $ 5,788 4,200 $ 1,500 510 Sales Costs Taxable income Taxes (34%) Net income $ 990 Current assets Fixed assets Total Statement of Financial Position $ 3,900 Current liabilities. 8,100 Long-term debt Equity Total $12,000 $ 2,200 3,750 6,050 $12,000 Assets, costs, and current llabilities are proportional to sales. Long-term debt and equity are not. Kitsilano maintains a constant 40% dividend payout ratio. Like every other firm In Its Industry, next year's sales are projected to Increase by exactly 15%. What is the external financing needed? (Negative amount should be Indicated by a minus sign. Do not round Intermediate calculations. Round the final answer to 2 decimal places. Omit $ sign in your response.) External financing needed $

The most recent financial statements for Kitsilano Inc. are shown here: Statement of Comprehensive Income $ 5,788 4,200 $ 1,500 510 Sales Costs Taxable income Taxes (34%) Net income $ 990 Current assets Fixed assets Total Statement of Financial Position $ 3,900 Current liabilities. 8,100 Long-term debt Equity Total $12,000 $ 2,200 3,750 6,050 $12,000 Assets, costs, and current llabilities are proportional to sales. Long-term debt and equity are not. Kitsilano maintains a constant 40% dividend payout ratio. Like every other firm In Its Industry, next year's sales are projected to Increase by exactly 15%. What is the external financing needed? (Negative amount should be Indicated by a minus sign. Do not round Intermediate calculations. Round the final answer to 2 decimal places. Omit $ sign in your response.) External financing needed $

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 6MCQ

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The most recent financial statements for live co. Are shown here: income statement: sales $12,000, costs 7,200, taxable income $4,800, taxes(34%) 1,632, net income $3,168, current assets $ 25,876, fixed assets 18,106, total $43,982, debt $ 25,502, equity 18, 480, total $43,982. Assets and cost are proportional to sales. Debt and equity are not. The company maintains a constant 22 percent dividend payout ratio. No external equity financing is possible. What is sustainable growth rate?
The most recent financial statements for Assouad, Incorporated, are shown here: Income Statement Balance Sheet $ Sales Costs Current assets $5,100 Current liabilities $ 3,150 10,700 7,600 Fixed assets 10,000 Long-term debt 4,680 Taxable income $3,100 Equity 7,270 Taxes (24%) 744 Total $ 15,100 Total $ 15,100 Net income $ 2,356 Assets, costs, and current liabilities are proportional to sales. Long-term debt and equity are not. The company maintains a constant 44 percent dividend payout ratio. As with every other firm in its industry, next year's sales are projected to increase by exactly 15 percent. What is the external financing needed? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
The most recent financial statements for live co. Are shown here: income statement: sales $3,000, cost 1,980, Taxable income $1,020, Taxes (34%) 347, net income $673, current assets $3,189, fixed assets 7,807, total $10, 996, debt $6,376, equity 4,620, total $10,996. Assets and cost are proportional to sales. Debt and equity are not. The company maintains a constant 20 percent dividend payout ratio. No external equity financing is possible. What is the internal growth rate?
The most recent financial statements for Assouad, Inc., are shown here: Income Statement Balance Sheet Sales $3,500 Current assets $4,000 Current liabilities $970 Costs 2,500 Fixed assets 6,200 Long-term debt 3,500 Taxable income $1,000 Equity 5,730 Taxes (25%) 250 Total $10,200 Total $10,200 Net income $750 Assets, costs, and current liabilities are proportional to sales. Long-term debt and equity are not. The company maintains a constant 50 percent dividend payout ratio. As with every other firm in its industry, next year's sales are projected to increase by exactly 20 percent. What is the external financing needed?
The most recent financial statements for Anderson Company are shown here: Income Statement Balance Sheet Sales Costs $ 58,800 Current assets $ 28,800 24,800 Fixed assets 123,000 Long-term debt Equity $ 62,600 89,200 Taxable income $ 34,000 Total $151,800 Total $151,800 Taxes (21%) 7,140 Net income $ 26,860 Assets and costs are proportional to sales. Long-term debt and equity are not. The company maintains a constant 30 percent dividend payout ratio and a constant debt- equity ratio. What is the maximum increase in sales that can be sustained assuming no new equity is issued? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Maximum increase in sales
The most recent financial statements for Bello Co. are shown here: Income Statement Balance Sheet Sales $13,000 Current assets $28,032 Debt $27,628 Costs 7,800 Fixed assets 19,616 Equity 20,020 Taxable income $5,200 Total $47,648 Total $47,648 Taxes (22%) 1,144 Net income $4,056 Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 36 percent dividend payout ratio. What is the sustainable growth rate?
The following financial ratios have been calculated for Nova Ltd for the year ended 30 June 2008:Ratio ActualresultsBudgetedresultsPreviousyearIndustry AverageCurrent ratio 1.97 1.92 1.87 1.92Quick asset ratio 1.06 1.06 1.06 1.11Inventory turnover 4.21 4.91 4.86 4.76Net profit ratio 0.05 0.03 0.03 0.03Gross margin 0.65 0.59 0.61 0.61Required:Provide four (4) possible explanations for the results of the various ratios for Nova Ltd and explaintheir implications for the audit.
The most recent financial statements for Assouad, Incorporated, are shown here: Income Statement Balance Sheet Sales $ 8,700 Current assets $ 4,200 Current liabilities $ 1,900 Costs 5,600 Fixed assets 10,400 Long-term debt 3,800 Taxable income $ 3,100 Equity 8,900 Taxes (25%) 775 Total $ 14,600 Total $ 14,600 Net income $ 2,325 Assets, costs, and current liabilities are proportional to sales. Long-term debt and equity are not. The company maintains a constant 40 percent dividend payout ratio. As with every other firm in its industry, next year’s sales are projected to increase by exactly 15 percent. What is the external financin
The most recent financial statements for Bello Co. are shown here: Income Statement Balance Sheet Sales $ 19,800 Current assets $ 11,880 Debt $ 16,240 Costs 13,500 Fixed assets 30,150 Equity 25,790 Taxable income $ 6,300 Total $ 42,030 Total $ 42,030 Taxes (24%) 1,512 Net income $ 4,788 Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 35 percent dividend payout ratio. What is the sustainable growth rate? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Calculating the Average Total Assets and the Return on Assets The income statement, statement of retained earnings, and balance sheet for Santiago Systems are as follows: Santiago Systems Income Statement For the Year Ended December 31, 20X2 Amount Percent Net sales $5,345,000 100.0% Less: Cost of goods sold (3,474,250) 65.0 Gross margin $1,870,750 35.0 Less: Operating expenses (1,140,300) 21.3 Operating income $730,450 13.7 Less: Interest expense (27,000) 0.5 Income before taxes Less: Income taxes (40%)* $703,450 13.2 (281,380) 5.3 Net income $422,070 7.9 * Includes both state and federal taxes.
Here are the comparative income statements of Cullumber Corporation. CULLUMBER CORPORATIONComparative Income StatementFor the Years Ended December 31 2022 2021 Net sales $639,400 $578,200 Cost of goods sold 464,800 433,400 Gross Profit 174,600 144,800 Operating expenses 70,500 43,000 Net income $ 104,100 $ 101,800 (a)Prepare a horizontal analysis of the income statement data for Cullumber Corporation, using 2021 as a base. (If amount and percentage are a decrease show the numbers as negative, e.g. -55,000, -20% or (55,000), (20%). Round percentages to 1 decimal place, e.g. 12.1%.) CULLUMBER CORPORATIONComparative Income Statementchoose the accounting period For the Years Ended December 31For the Month Ended December 31December 31 Increase or (Decrease) During 2022 2022 2021 Amount Percentage Net…
Calculating the Average Total Assets and the Return on Assets The income statement, statement of retained earnings, and balance sheet for Somerville Company are as follows. Also, assume a tax rate of 31%. Somerville CompanyIncome StatementFor the Year Ended December 31, 20X2 Amount Percent Net sales $8,281,989 100.0% Less: Cost of goods sold (5,383,293) 65.0 Gross margin $2,898,696 35.0 Less: Operating expenses (1,323,368) 16.0 Operating income $1,575,328 19.0 Less: Interest expense (50,000) 0.6 Income before taxes $1,525,328 18.4 Less: Income taxes (31%)* (472,852) 5.7 Net income $1,052,476 12.7 * Includes both state and federal taxes. Somerville CompanyStatement of Retained EarningsFor the Year Ended December 31, 20X2 Balance, beginning of period $1,979,155 Net income $1,052,476 Total $3,031,631 Preferred dividends (80,000) Dividends to common stockholders (201,887) Balance, end of period…