Question Details

(Solved by Expert Tutors) I have a nother problem if you can help?The Landis Corporation>


had 2008 sales of $100 million. The balance sheet items thatvary directly with sales and the profit margin are as follows:3 This included fixed assets as the firm is at full capacity.Chapter 4 Financial Forecasting 119www.mhhe.com/bhd13eThe dividend payout rate is 50 percent of earnings, and the balance in retained earningsat the end of 2008 was $33 million. Common stock and the company?s long-termbonds are constant at $10 million and $5 million, respectively. Notes payable are currently$12 million.a. How much additional external capital will be required for next year if salesincrease 15 percent? (Assume that the company is already operating at fullcapacity.)b. What will happen to external fund requirements if Landis Corporation reducesthe payout ratio, grows at a slower rate, or suffers a decline in its profit margin?Discuss each of these separately.c. Prepare a pro forma balance sheet for 2009 assuming that any external fundsbeing acquired will be in the form of notes payable. Disregard the information inpart b in answering this question (that is, use the original information and part ain constructing your pro forma balance sheet).PercentCash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5%Accounts receivable. . . . . . . . . . . . . . . . . . . . . . 15Inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25Net fixed assets . . . . . . . . . . . . . . . . . . . . . . . . . 40Accounts payable . . . . . . . . . . . . . . . . . . . . . . . 15Accruals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10Profit margin after taxes . . . . . . . . . . . . . . . . . . 6%"

 


Solution details:

Pay using PayPal (No PayPal account Required) or your credit card . All your purchases are securely protected by .
SiteLock

About this Question

STATUS

Answered

QUALITY

Approved

DATE ANSWERED

Apr 19, 2020

EXPERT

Tutor

ANSWER RATING

YES, THIS IS LEGAL

We have top-notch tutors who can do your essay/homework for you at a reasonable cost and then you can simply use that essay as a template to build your own arguments.

You can also use these solutions:

  • As a reference for in-depth understanding of the subject.
  • As a source of ideas / reasoning for your own research (if properly referenced)
  • For editing and paraphrasing (check your institution's definition of plagiarism and recommended paraphrase).
This we believe is a better way of understanding a problem and makes use of the efficiency of time of the student.

NEW ASSIGNMENT HELP?

Order New Solution. Quick Turnaround

Click on the button below in order to Order for a New, Original and High-Quality Essay Solutions. New orders are original solutions and precise to your writing instruction requirements. Place a New Order using the button below.

WE GUARANTEE, THAT YOUR PAPER WILL BE WRITTEN FROM SCRATCH AND WITHIN A DEADLINE.

Order Now