At year-end 2019, Wallace Landscaping'stotal assets were $2.09 million, and itsaccounts payable were $430,000. Sales,which in 2019 were $2.2 million, areexpected to increase by 15% in 2020.Total assets and accounts payable areproportional to sales, and thatrelationship will be maintained. Wallacetypically uses no current liabilities otherthan accounts payable. Common stockamounted to $650,000 in 2019, andretained earnings were $315,000.Wallace has arranged to sell $60,000 ofnew common stock in 2020 to meetsome of its financing needs. Theremainder of its financing needs will bemet by issuing new long-term debt atthe end of 2020. (Because the debt isadded at the end of the year, there willbe no additional interest expense due tothe new debt.) Its net profit margin onsales is 6%, and 60% of earnings will bepaid out as dividends. What was Wallace's total long-termdebt in 2019? Do not roundintermediate calculations. Enter youranswer in dollars. For example, ananswer of $2 million should beentered as 2,000,000. Round youranswer to the nearest dollar.$What were Wallace's total liabilities in2019? Do not round intermediatecalculations. Enter your answer indollars. For example, an answer of $2million should be entered as2,000,000. Round your answer to thenearest dollar.$How much new long-term debtfinancing will be needed in 2020?(Hint: AFN - New stock = New long-term debt.) Do not roundintermediate calculations. Enter youranswer in dollars. For example, ananswer of $2 million should beentered as 2,000,000. Round youranswer to the nearest dollar.$tA

Answered: Image /qna-images/answer/6dd2d687-5183-4fa4-b942-9fa1313d3cae.jpg

Answered: . How much new long-term debt financing…

. How much new long-term debt financing will be needed in 2020? (Hint: AFN - New stock = New long- term debt.) Do not round

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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for the year ending december 31 2019, settles inc. eanred an ROI of 8.8%. Sales for the year were 16 million and average asset turnover was 2.1. Average stockholder equity was 2.7 million. a. calculate settles margin and net inccome b. calculate settles return on equity
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?…
finance At year-end 2019, Wallace Landscaping’s total assets were $1.43 million, and its accounts payable were $515,000. Sales, which in 2019 were $2.6 million, are expected to increase by 30% in 2020. 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 $375,000 in 2019, and retained earnings were $275,000. Wallace has arranged to sell $110,000 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 net profit margin on sales is 6%, and 40% of earnings will be paid out as dividends. What was Wallace's total long-term debt in 2019? Do not round intermediate calculations. Enter your answer in dollars. For…
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…
Suppose the following financial data were reported by 3M Company for 2019 and 2020 (dollars in millions). 3M CompanyBalance Sheets (partial) 2020 2019Current assets Cash and cash equivalents $3,180 $1,836Accounts receivable, net 3,600 3,180Inventories 2,738 3,019Other current assets 1,932 1,590Total current assets $11,450 $9,625Current liabilities $4,830 $5,887 Calculate the current ratio and working capital for 3M for 2019 and 2020. (Round current ratio to 2 decimal places, e.g. 1.25 : 1. Enter working capital answers to million.) Current ratio 2019 :12020 :1 Working capital 2019 $ million2020 $ million Link to Text
Suppose the following financial data were reported by 3M Company for 2019 and 2020 (dollars in millions). 3M CompanyBalance Sheets (partial) 2020 2019Current assets Cash and cash equivalents $3,200 $1,845Accounts receivable, net 3,450 3,180Inventories 2,639 3,042Other current assets 1,872 1,549Total current assets $11,161 $9,616Current liabilities $4,853 $5,893 (a)Calculate the current ratio and working capital for 3M for 2019 and 2020. (Round current ratio to 2 decimal places, e.g. 1.25 : 1. Enter working capital answers to million.) Current ratio 2019 :12020 :1 Working capital 2019 $ million2020 $ million (b)The parts of this question must be completed in order. This part will be available when you complete the part above.
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Suppose the following financial data were reported by 3M Company for 2019 and 2020 (dollars in millions). 3M CompanyBalance Sheets (partial) 2020 2019 Current assets Cash and cash equivalents $3,200 $1,881 Accounts receivable, net 3,500 3,175 Inventories 2,702 3,044 Other current assets 1,896 1,582 Total current assets $11,298 $9,682 Current liabilities $4,791 $5,869 1.Calculate the current ratio and working capital for 3M for 2019 and 2020. 2.Suppose that at the end of 2020, 3M management used $198 million cash to pay off $198 million of accounts payable. How would its current ratio and working capital have changed?
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.
Sheridan Corporation had the following 2020 income statement. Revenues $95,000Expenses 63,000 $32,000 In 2020, Sheridan had the following activity in selected accounts. Accounts Receivable1/1/20 20,000Revenues 95,00012/31/20 22,100 Write-offs 900Collections 92,000 Allowance for Doubtful AccountsWrite-offs 900 1/1/20 1,200Bad debt expense 1,90012/31/20 2,200 (a) Prepare Sheridan’s cash flows from the operating activities section of the statement of cash flows using the direct method. Sheridan CorporationStatement of Cash Flows-Direct Method (Partial) $ $ (b) Prepare Sheridan’s cash flows from the operating activities section of the statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) Sheridan CorporationStatement of…
At the beginning of 2019, Blue Devil Inc. had net Accounts Receivable of $49,000. At the end of 2019, Blue Devil had cash of $41,000; net Accounts Receivable of $51,000; and short-term investments of $15,000. It also has $28,000 in current liabilities and $39,000 in long-term liabilities. The sales of 2019 is $120,000 and net income is $18,000. Required: Calculate the quick ratio and the account receivable turnover for 2019. Please show your calculation steps.
Suppose the following financial data were reported by 3M Company for 2019 and 2020 (dollars in millions). 3M CompanyBalance Sheets (partial) 2020 2019 Current assets Cash and cash equivalents $3,040 $1,908 Accounts receivable, net 3,370 3,180 Inventories 2,774 3,016 Other current assets 1,956 1,628 Total current assets $11,140 $9,732 Current liabilities $4,882 $5,875 Calculate the current ratio and working capital for 3M for 2019 and 2020.

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