Antivirus Inc. expects its sales next year to be $2,500,000. Inventory and accounts receivable will increase $480,000 to accommodate this sales level. The company has a steady profit margin of 15 percent with a 35 percent dividend payout. How much external financing will the firm have to seek? Assume there is no increase in liabilities other than that which will occur with the external financing.
Solved
Show answers
More tips
- F Family and Home Daughter says: If you don t want to do it, don t do it. Should we persuade her?...
- H Health and Medicine How Did Inna Lose Weight on Dom 2?...
- H Health and Medicine Coughing: Causes, Types, and Treatment Methods...
- H Health and Medicine How to Treat the Flu: A Comprehensive Guide...
- O Other What is a Disk Emulsifier and How Does it Work?...
- F Family and Home What does a newborn need?...
- F Family and Home Choosing the Right Car Seat for Your Child: Tips and Recommendations...
- F Food and Cooking How to Get Reconfirmation of Registration?...
- C Computers and Internet How to Get Rid of Spam in ICQ?...
- A Art and Culture Who Said The Less We Love a Woman, the More She Likes Us ?...
Answers on questions: Business
- B Business The beginning account balances for Terry’s Auto Shop as of January 1, Year 2, follow...
- B Business List two teamwork skills and explain what they mean...
- B Business How many district courts are in the federal court system...
- B Business An arraignment a bail hearing and a trial for a felony offense are all conducted at which tier of a state court system...
- M Mathematics Base 2 111 to base 10...
- B Business A current account surplus is favored over a deficit. If a country is faced with a current account deficit it would have to in order to support this situation....
- M Mathematics Find the slope of the line passing through the points (-8, 9) and (6, 9)....
- P Physics Okay so I want to watch basketball cuz I never like it when I was a kid but know I rly like basketball and wanna start watching it but ik nothtin about basketball...
- H History Directions: Place these events in the history of Islam in order from earliest to latest. O Muhammad became a prophet. O Muhammad returned to Mecca. O Muhammad died...
- S Social Studies The Fourth Amendment protects a personâs rights against the police, but generally does not apply to searches and seizures conducted by ....
Ответ:
$236,250
Explanation:
The computation of external financing is shown below:-
For computing the external financing first we need to find out the retained earning which is shown below:-
Net income = Sales × Profit margin
= $2,500,000 × 15%
= $375,000
Increase in retained earning = Net income - Dividends
= $375,000 - ($375,000 × 35%)
= $375,000 - $131,250
= $243,750
External financing = Increase in assets - Increase in retained earning
= $480,000 - $243,750
= $236,250
Ответ: