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28 Sep 2019
Suppose that Gyp SumIndustries currently has the balance sheet shown below, and thatsales for the year just ended were $10.9 million. The firm also hasa profit margin of 25 percent, a retention ratio of 30 percent, andexpects sales of $8.9 million next year.
Assets Liabilities and Equity Currentassets $ 2,621,000 Currentliabilities $ 2,557,140 Fixedassets 4,900,000 Long-termdebt 1,950,000 Equity 3,013,860 Totalassets $ 7,521,000 Totalliabilities and equity $ 7,521,000
If all assets andcurrent liabilities are expected to shrink with sales, what amountof additional funds will Gyp Sum need from external sources to fundthe expected growth?(Enter youranswer in dollars not in millions.Negative amount should be indicated by a minussign.)
Suppose that Gyp SumIndustries currently has the balance sheet shown below, and thatsales for the year just ended were $10.9 million. The firm also hasa profit margin of 25 percent, a retention ratio of 30 percent, andexpects sales of $8.9 million next year.
| Assets | Liabilities and Equity | ||||||
| Currentassets | $ | 2,621,000 | Currentliabilities | $ | 2,557,140 | ||
| Fixedassets | 4,900,000 | Long-termdebt | 1,950,000 | ||||
| Equity | 3,013,860 | ||||||
| Totalassets | $ | 7,521,000 | Totalliabilities and equity | $ | 7,521,000 | ||
If all assets andcurrent liabilities are expected to shrink with sales, what amountof additional funds will Gyp Sum need from external sources to fundthe expected growth?(Enter youranswer in dollars not in millions.Negative amount should be indicated by a minussign.)
Beverley SmithLv2
28 Sep 2019