At year-end 2021, total assets for Arrington Inc. were $1.4 million and accounts payable were $330,000, Sales, which in 2021 were $2.70 million, are expected to increase by 25% in 2022. Total assets and accounts payable areproportional to sales, and that relationship will be maintained, that is, they will grow at the same rate as sales Arrington typically uses no cument abilities other than accounts payable. Common stock amounted to $410,000 in 2021, andretained earnings were $335,000. Arrington plans to sell new common stock in the amount of $105,000. The firm's profit margin on sales is 5%; 35% of earnings will be retained.What were Arrington's total abisties in 2021? Write out your answer completely. For example, 25 million should be entered as 25,000,000. Round your answer to the nearest cent1How much new long-term debt financing will be needed in 20227 (Hint: APN New stock New long-term debt.) Write out your answer completely. For example, 25 million should be entered as 25,000,000. Do not roundintermediate calculations. Round your answer to the nearest centS

At year-end 2021,total assets = $1.4 millionaccounts payable = $330,000,Sales in 2021 = $2.70…

20 ad uz pda a vew 120 000 CES de put Ay a 1202000's preportional sales, and that relationship will be maintained that How much new long-term debt financing will be needed in 20227 0 SRI DAANU PA s sensue not pu amount of $105,000. The firm's prom en should be entered as 25,000,000 Round your answer to the nearest 000000's sty

20 ad uz pda a vew 120 000 CES de put Ay a 1202000's preportional sales, and that relationship will be maintained that How much new long-term debt financing will be needed in 20227 0 SRI DAANU PA s sensue not pu amount of $105,000. The firm's prom en should be entered as 25,000,000 Round your answer to the nearest 000000's sty

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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At year-end 2021, total assets for Arrington Inc. were $1.7 million and accounts payable were $350,000. Sales, which in 2021 were $2.60 million, are expected to increase by 25% in 2022. Total assets and accounts payable are proportional to sales, and that relationship will be maintained; that is, they will grow at the same rate as sales. Arrington typically uses no current liabilities other than accounts payable. Common stock amounted to $405,000 in 2021, and retained earnings were $285,000. Arrington plans to sell new common stock in the amount of $160,000. The firm's profit margin on sales is 5%; 50% of earnings will be retained. a. What were Arrington's total liabilities in 2021? Write out your answer completely. For example, 25 million should be entered as 25,000,000. Round your answer to the nearest cent. b. How much new long-term debt financing will be needed in 2022? (Hint: AFN - New stock = New long-term debt.) Write out your answer completely. For example, 25 million should be…
At year-end 2018, total assets for Arrington Inc. were$1.8 million and accounts payable were $450,000. Sales, which in 2018 were $3.0 million,are expected to increase by 25% in 2019. Total assets and accounts payable are proportionalto sales, and that relationship will be maintained; that is, they will grow at the same rate assales. Arrington typically uses no current liabilities other than accounts payable. Commonstock amounted to $500,000 in 2018, and retained earnings were $475,000. Arrington plansto sell new common stock in the amount of $130,000. The firm’s profit margin on sales is5%; 35% of earnings will be retained.a. What were Arrington’s total liabilities in 2018?b. How much new long-term debt financing will be needed in 2019?(Hint: AFN - New stock = New long-term debt.)
At year-end 2020, RWD Inc.’s total assets were $1.2 million and its accounts payable were $375,000. Sales, which in 2020 were $2.5 million, are expected to increase by 25% in 2021. Total assets and accounts payable are proportional to sales, and that relationship will be maintained. RWD typically uses no current liabilities other than accounts payable. Its profit margin on sales is 6%, and 40% of earnings will be paid out as dividends. Determine the amount of AFN for year 2021. Calculate earnings per share (EPS) for CVN and TPO for year 2020 and each of the next 6 years if CVNacquires TPO at a ratio of exchange of 1.3. Describe the initial effect and long run effect on EPS of CVN and TPO. Does merger look beneficial forCVN and TPO? Why or why not?
At year-end 2020, RWD Inc.’s total assets were $1.2 million and its accounts payable were $375,000. Sales, which in 2020 were $2.5 million, are expected to increase by 25% in 2021. Total assets and accounts payable are proportional to sales, and that relationship will be maintained. RWD typically uses no current liabilities other than accounts payable. Its profit margin on sales is 6%, and 40% of earnings will be paid out as dividends. Determine the amount of AFN for year 2021.
At year-end 2018, Wallace Landscaping's total assets were $2.17 million, and its accounts payable were $470,000. Sales, which in 2018 were $2.2 million, are expected to increase by 30% in 2019. Total assets and accounts payable are proportional to sales, and that relationship will be maintained. Wallace typically uses no current liabilities other than accounts payable. Common stock amounted to $505,000 in 2018, and retained earnings were $345,000. Wallace has arranged to sell $60,000 of new common stock in 2019 to meet some of its financing needs. The remainder of its financing needs will be met by issuing new long-term debt at the end of 2019. (Because the debt is added at the end of the year, there will be no additional interest expense due to the new debt.) Its net profit margin on sales is 7%, and 45% of earnings will be paid out as dividends. a. What was Wallace's total long-term debt in 2018? Do not round intermediate calculations. Round your answer to the nearest dollar. $ What…
During 2021, Blossom Inc. has the following account balances in Income Statement: Sales 1,630,245 Cost of Sales 646,788 Selling Expense 235,500 Administrative Expense 114,766 Other Expense 57,146 Income Tax Expense 200,400 Other Revenue 65,800 What will be the Net income?
Hamad Corporation's total sales for 2022 were AED 800 million, and gross profit was AED 100 million, current assets AED 200 , cash AED 10 million, accounts receivables 90 million and account payable 40 million. Calculate accounts payable days , collection period, inventory days and accounts payable turn over.
At year-end 2019, Waqar Pharma’s total assets were $3.25 million and itsaccounts payable were $890,000. Sales, which in 2019 were $4.5 million, are expectedto increase by 40% in 2020. Total assets and accounts payable are proportional tosales, and that relationship will be maintained. Waqar typically uses no currentliabilities other than accounts payable. Common stock amounted to $925,000 in 2019,and retained earnings were $695,000. Waqar has arranged to sell $295,000 of newcommon stock in 2020 to meet some of its financing needs. The remainder of itsfinancing needs will be met by issuing new long-term debt at the end of 2020.(Because the debt is added at the end of the year, there will be no additional interest expense due to the new debt.) Its net profit margin on sales is 6.5%, and 40% ofearnings will be paid out as dividends. Required (a.) What were Waqar’s total long-term debt and total liabilities in 2019? (b.) How much new long-term debt financing will be needed in 2020?…
At year-end 2019, total assets for Ant-Inc. were $1.1 million and accounts payable were $390,000. Sales, which in 2019 were $2.20 million, are expected to increase by 30% in 2020. Total assets and accounts payable are proportional to sales, and that relationship will be maintained; that is, they will grow at the same rate as sales. Ant typically uses no current liabilities other than accounts payable. Common stock amounted to $355,000 in 2019, and retained earnings were $345,000. Ant plans to sell new common stock in the amount of $150,000. The firm's profit margin on sales is 3%; 45% of earnings will be retained. What were Ant's total liabilities in 2019? Write out your answer completely. For example, 25 million should be entered as 25,000,000. Round your answer to the nearest cent.$ How much new long-term debt financing will be needed in 2020? (Hint: AFN - New stock = New long-term debt.) Write out your answer completely. For example, 25 million should be entered as…
The following data are taken from the financial statements of Sheffield Company. Accounts receivable (net), end of year Net sales on account Terms for all sales are 1/10, n/45 (a1) X Your answer is incorrect. 2022 $555,000 3,997,500 2021 $470,000 3,122,250 Compute for each year the accounts receivable turnover. At the end of 2020, accounts receivable (net) was $435,000. (Round answers to 1 decimal place, e.g. 1.6.)
The Malia Corporation had sales in 2019 of $65 million, total asswets of $42 million, and total liabilities of $20 million. The interest rate on th company's debt is 6 percent and its tax rate is 21 percent. The operating profit margin was 12 percent. What were the company's operating profits and net income? What was the operating return on assets and return on equity? Assume that interest must be paid on all of the debt.
At year-end 2019, ABC Inc.’s total assets were $1 million and its accounts payable were $325,000. Sales, which in 2019 were $2 million, are expected to increase by 30% in 2020. Total assets and accounts payable are proportional to sales, and that relationship will be maintained. ABC typically uses no current liabilities other than accounts payable. Common stock amounted to $375,000 in 2019, and retained earnings were $260,000. ABC has arranged to sell $60,000 of new common stock in 2020 to meet some of its financing needs. The remainder of its financing needs will be met by issuing new long-term debt at the end of 2020. (Because the debt is added at the end of the year, there will be no additional interest expense due to the new debt.) Its profit margin on sales is 5%, and 45% of earnings will be paid out as dividends. a. What were ABC’s total long-term debt and total liabilities in 2020?b. How much additional fund needed (AFN) in 2020?

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