week 3 assignment - (Dollars in Millions) Cash....

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CP Solution: Landis Corporation % 25 % 10 % 15 s liabilitie s Spontaneou 85% 40% 25% 15% 5% assets s Spontaneou million 15 million $100 .15 Sales = + = = + + + = = × = ( 29 ( 29 ( 29 ( 29 ( 29 ( 29 ( 29 million $5.55 million 45 . 3 $ million 75 . 3 $ million 75 . 12 $ 5 . 1 115 $ 06 . million 15 $ 25 . million 15 $ 85 . d 1 PS S S L S S A RNF a. 2 = - - = - - - = - - - = b. When Landis decreases the expense proportion, the business should maintain extra income and require fewer outside finances. A slower increase rate states that fewer resources should be financed and in this case, fewer outside resources will be desired. A decreasing profit margin will decrease the retained income and make Landis Corporation seek more outside funds.
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c. Balance Sheet—December 31, 2005
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Unformatted text preview: (Dollars in Millions) Cash. ............................. $ 5.75 Accounts Owed. ......... $17.25 Accounts Receivable. ... 17.25 Accruals. ..................... 11.50 Stock. ............................ 28.75 Notes Owed. ............... 17.55 1 Net Fixed Assets 46.00 Long-Term Bonds. ..... 5.00 Common Supply. ........ 10.00 _____ Retained Income. ........ 36.45 2 $97.75 $97.75 1 Original notes to be paid in addition necessary new funds. This is the plug figure. 2 2005 retained income (the start of 2005) + PS 2 (1-.D) or $33 mil + $3.45 mil...
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week 3 assignment - (Dollars in Millions) Cash....

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