Tim Gillespie Week 2

Tim Gillespie Week 2 - Tim Gillespie 2008 Sales...

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Unformatted text preview: Tim Gillespie 2008 Sales $100,000,000.00 Week 2 Chapter 4 Landis Corp. Profit Margin after taxes 6.00% Dividend Payout 50.00% Landis Corporation Balance Sheet and Percent of Sales Table as of December 31 2008 Assets Liabilities Cash $5,000,000.00 Accounts Payable $15,000,000.00 AR $15,000,000.00 Accruals $10,000,000.00 Inventory $25,000,000.00 Notes Payable $12,000,000.00 Total Current Assets $45,000,000.00 Common Stock $10,000,000.00 Long Term Bonds $5,000,000.00 Fixed Assets $40,000,000.00 Retained Earnings $33,000,000.00 Total Assets $85,000,000.00 Total Liabilities and Stockholder Equity $85,000,000.00 Percent of Sales Table Cash 5.00% Accounts Payable 15.00% AR 15.00% Accruals 10.00% Inventory 25.00% Total Current 45.00% Fixed Assets 40.00% Total Assets 85.00% 25.00% A. External Capital Needed Sales Increase 15.00% $15,000,000.00 Assets to Sales 85.00%Assets * Increase 85% x $15,000,000.00 = $12,750,000.00 Change in Sales $15,000,000.00 Liabilities * Increase 25% x $15,000,000.00 = $3,750,000.00 Liabilities to Sales 25.00%Profit Marg * New Sales Total 6% x $115,000,000.00 = $3,450,000.00 Profit Margin 6.00% New Sales Level $115,000,000.00 External Funds Requirement $5,550,000.00 Dividend Payout Ratio 50.00% B. Reduces Payout Ratio Assets to Sales 85.00%Assets * Increase 85% x $15,000,000.00 = $12,750,000.00 Change in Sales $15,000,000.00 Liabilities * Increase 25% x $15,000,000.00 = $3,750,000.00 Liabilities to Sales 25.00%Profit Marg * New Sales Total 6% x $115,000,000.00 = $4,140,000.00 Profit Margin 6.00% Subtract all 3 New Sales Level $115,000,000.00 External Fund Requirement $4,860,000.00 Dividend Payout Ratio 40.00% Grows at Slower Rate Assets to Sales 85.00%Assets * Increase 85% x $10,000,000.00 = $8,500,000.00 Change in Sales $10,000,000.00 Liabilities * Increase 25% x $10,000,000.00 = $2,500,000.00 Liabilities to Sales 25.00%Profit Marg * New Sales Total25....
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Tim Gillespie Week 2 - Tim Gillespie 2008 Sales...

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