Sample EFN, IGR and SGR problems in WORD.docx - Finance 305 Sample Problems involving EFN IGR and SGR 3 The most recent financial statements for Company

Sample EFN, IGR and SGR problems in WORD.docx - Finance 305...

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Finance 305 Sample Problems involving EFN, IGR, and SGR. 3. The most recent financial statements for Company X are shown below. (Assuming NO income taxes) Income Statement Balance Sheet Sales $6,300 Assets $18,300 Debt $12,400 Costs $3,800 Equity $5,900 Net Income $2,410 Total $18,300 Total $18,300 Assets and costs are proportional to sales. Debt and Equity are not. No dividends are paid. Next year’s sales are projected to be $7,434. What is the Additional Funding Needed (AFN = EFN = RNF)? 4. The most recent financial statements for Company X are shown below. Income Statement Balance Sheet Sales $19,500 Assets $98,000 Debt $52,500 Costs $15,000 Equity $45,500 EBT $4,500 Total $98,000 Total $98,000 Taxes (40%) 1,800 Net Income $2,700 Assets and costs are proportional to sales. Debt and equity are not. A dividend of $1,400 was paid, and the company wishes to maintain a constant dividend payout ratio. Next year’s sales are projected to be $21,840. What is Additional Funding Needed? 5. The most recent financial statements for Company X are shown below: Income Statement Balance Sheet Sales: $4,200 Current Assets: $3,600 Current Liabilities: $2,100 Costs: 3,300 Fixed Assets: 7,900 Long Term Debt 3,650 Taxable Income 900 Equity 5,750 Less Taxes (34%) - 306 Total: $11,500 Total: $11,500 Net Income = $594 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 financing needed?
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6. The most recent financial statements for Company X are shown below.
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  • Spring '14
  • Balance Sheet, Net Income, Generally Accepted Accounting Principles, dividend payout ratio, recent financial statements

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