AFNhomework

AFNhomework - Additional Funds Needed Homework 1. Jill's...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

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;...
View Full Document

Page1 / 2

AFNhomework - Additional Funds Needed Homework 1. Jill's...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online