At year-end 2019, total assets for Arrington Inc. were $1.5 million and accounts payable were $365,000. Sales, which in 2019 were $2.20 million, are expected to increase by 25% 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. Arrington typically uses no current liabilities other than accounts payable. Common stock amounted to $485,000 in 2019, and retained earnings were $390,000. Arrington plans to sell new common stock in the amount of $100,000. The firm's profit margin on sales is 4%; 50% of earnings will be retained. a. What were Arrington'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. S b. 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 25,000,000. Do not round intermediate calculations. Round your answer to the nearest cent. $

At year-end 2019, total assets for Arrington Inc. were $1.5 million and accounts payable were $365,000. Sales, which in 2019 were $2.20 million, are expected to increase by 25% 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. Arrington typically uses no current liabilities other than accounts payable. Common stock amounted to $485,000 in 2019, and retained earnings were $390,000. Arrington plans to sell new common stock in the amount of $100,000. The firm's profit margin on sales is 4%; 50% of earnings will be retained. a. What were Arrington'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. S b. 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 25,000,000. Do not round intermediate calculations. Round your answer to the nearest cent. $

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

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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…
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…
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Tamarisk Co. reports the following information for 2020: sales revenue $769,400, cost of goods sold $502,400, operating expenses $88,400, and an unrealized holding loss on available-for-sale debt securities for 2020 of $57,800. It declared and paid a cash dividend of $14,160 in 2020. Tamarisk Co. has January 1, 2020, balances in common stock $365,300; accumulated other comprehensive income $90,400; and retained earnings $91,010. It issued no stock during 2020. (Ignore income taxes.) Prepare a statement of stockholders' equity. TAMARISK CO. Statement of Stockholders' Equity For the Year Ended December 31, 2020 Accumulated Other Total Retained Earnings Comprehensive Income Common Stock
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Use the following information and the percent-of-sales method to answer this question. Below is the 2021 year-end balance sheet for Isaiah, Inc. Sales for 2021 were $1,600,000 and are expected to be $2,000,000 during 2022. In addition, we know that Isaiah Inc. plans to pay $90,000 in 2022 dividends and expects a projected net income of 4% of sales. (For consistency with the Answer selections provided, round your forecast percentages to two decimals.) How much is the projected current assets for 2022? Isaiah, Inc. Balance Sheet Assets Current assets Net fixed assets Total Liabilities and Owners' Equity Accounts payable Accrued expenses Notes payable Long-term debt Total liabilities Common stock (plus paid-in capital) Retained earnings Common equity Total O 1.260 M December 31, 2021 1.500 M O 1.000 M 1.120 M $890,000 1,000,000 $1,890,000 $160,000 100,000 700,000 300,000 1,260,000 360,000 270,000 630,000 $1,890,000
C. Reither Co. reports the following information for 2020: sales revenue $700,000, cost of goods sold $500,000, operating expenses $80,000, and an unrealized holding loss on available-for-sale debt securities for 2020 of $60,000. It declared and paid a cash dividend of $10,000 in 2020. C. Reither Co. has January 1, 2020, balances in common stock $350,000; accumulated other comprehensive income $80,000; and retained earnings $90,000. It issued no stock during 2020. Instructions Prepare a statement of stockholders’ equity. (Ignore income taxes.)

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