The most recent financial statements for Crosby, Inc., follow. Sales for 2018 are projected to grow by 20 percent. Interest expense will remain constant; the tax rate and the dividend payout rate will also remain constant. Costs, other expenses, current assets, fixed assets, and accounts payable increase spontaneously with sales.
CROSBY, INC.
2017 Income Statement
Sales $ 980,760
Costs 792,960
Other expenses 20,060
Earnings before interest and taxes $ 167,740
Interest paid 14,740
Taxable income $ 153,000
Taxes (21%) 32,130
Net income $ 120,870
Dividends $ 39,250
Addition to retained earnings 81,620
CROSBY, INC.
Balance Sheet as of December 31, 2017
Assets Liabilities and Owners’ Equity
Current assets Current liabilities
Cash $ 27,920 Accounts payable $ 71,720
Accounts receivable 42,630 Notes payable 17,620
Inventory 95,910 Total $ 89,340
Total $ 166,460 Long-term debt $ 170,000
Fixed assets Owners’ equity
Net plant and equipment $ 455,980 Common stock and paid-in surplus $ 140,000
Retained earnings 223,100
Total $ 363,100
Total assets $ 622,440 Total liabilities and owners’ equity $ 622,440
If the firm is operating at full capacity and no new debt or equity is issued, what external financing is needed to support the 20 percent growth rate in sales?
Answers: 3
Business, 21.06.2019 21:20
According to the u.s. census bureau (), the median household income in the united states was $23,618 in 1985, $34,076 in 1995, $46,326 in 2005, and $57,230 in 2015. in purchasing power terms, how did family income compare in each of those four years? you will need to know that the cpi (multiplied by 100, 1982–1984 = 100) was 107.6 in 1985, 152.4 in 1995, 195.3 in 2005, and 237.0 in 2015
Answers: 3
Business, 22.06.2019 07:30
An important application of regression analysis in accounting is in the estimation of cost. by collecting data on volume and cost and using the least squares method to develop an estimated regression equation relating volume and cost, an accountant can estimate the cost associated with a particular manufacturing volume. consider the following sample of production volumes and total cost data for a manufacturing operation. production volume (units) total cost ($) 400 4000 450 5000 550 5400 600 5900 700 6400 750 7000 compute b 1 and b 0 (to 2 decimals if necessary). b 1 b 0 complete the estimated regression equation (to 2 decimals if necessary). = + x what is the variable cost per unit produced (to 1 decimal)? $ compute the coefficient of determination (to 4 decimals). note: report r 2 between 0 and 1. r 2 = what percentage of the variation in total cost can be explained by the production volume (to 2 decimals)? % the company's production schedule shows 500 units must be produced next month. what is the estimated total cost for this operation (to 2 decimals)? $
Answers: 1
Business, 22.06.2019 09:40
Newton industries is considering a project and has developed the following estimates: unit sales = 4,800, price per unit = $67, variable cost per unit = $42, annual fixed costs = $11,900. the depreciation is $14,700 a year and the tax rate is 34 percent. what effect would an increase of $1 in the selling price have on the operating cash flow?
Answers: 2
Business, 22.06.2019 18:00
Large public water and sewer companies often become monopolies because they benefit from although the company faces high start-up costs, the firm experiences average production costs as it expands and adds more customers. smaller competitors would experience average costs and would be less
Answers: 1
The most recent financial statements for Crosby, Inc., follow. Sales for 2018 are projected to grow...
Arts, 21.01.2021 17:20
Arts, 21.01.2021 17:20
Mathematics, 21.01.2021 17:20
Biology, 21.01.2021 17:20
Mathematics, 21.01.2021 17:20
Mathematics, 21.01.2021 17:20
Chemistry, 21.01.2021 17:20
Arts, 21.01.2021 17:20
Chemistry, 21.01.2021 17:20
Health, 21.01.2021 17:20