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Unformatted text preview: Additional Funds Needed Homework 1. Jill's Wigs Inc. had the following balance sheet last year: Last Fact. 1 st Pass Last Fact. 1 st Pass Cash $ 800 Accounts payable $ 350 Accounts receivable 450 Accrued wages 150 Inventory 950 Notes payable 2,000 Net fixed assets 34,000 Mortgage 26,500 Common stock 3,200 Retained earnings 4,000 Total liabilities Total assets $36,200 and equity $36,200 Jill has just invented a non-slip wig for men which she expects will cause sales to double, increasing after-tax net income to $1,000. She was at 65% of capacity last year. (a) Will Jill need any outside capital if she pays no dividends? (b) If so, how much? 2. A firm has the following balance sheet: Last Factor 1 st Pass Last Factor 1 st Pass Cash $ 10 Accounts payable $ 10 Accounts receivable 10 Notes payable 20 Inventories 10 Long-term debt 40 Fixed assets 90 Common stock 40 Retained earnings 10 Total assets $120 Total liab.& equity $120 Fixed assets are being used at 80 percent of capacity; sales for the year just ended were $200;...
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- Spring '08