Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. carlsbad corporation's sales are expected to incre

Carlsbad Corporation's sales are expected to increase from $5 million in 2016 to $6 million...

90.2K

Verified Solution

Question

Finance

image
Carlsbad Corporation's sales are expected to increase from $5 million in 2016 to $6 million in 2017 , or by 20%. Its assets totaled $5 million at the end of 2016. Carlsbad is at full capacity, so its assets must grow in proportion to projected sales. At the end of 2016 , current liabilities are $1 million, consisting of $250,000 of accounts payable, $500,000 of notes payable, and $250,000 of accrued liabilities. Its profit margin is forecasted to be 3%, and the forecasted retention ratio is 25%. Use the AFN equation to forecast Carlsbad's additional funds needed for the coming year. Write out your answer completely. For example, 5 million should be entered as 5,000,000. Round your answer to the nearest cent. Now assume the company's assets totaled $3 million at the end of 2016 . Is the company's "capital intensity" the same or different comparing to initial situation

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Find the area of the shaded region 1 y 8 00 6 4 2 1...

Calculus
Q

4. The following table shows an abbreviated income...

Accounting
Q

Dorah, the sole stockholder of Barnie Inc., runs a home-cleaning service in the suburb of...

Accounting
Q

2. the following are transactions for the city of Clinton a. Borrowed $100,000 by issuing...

Accounting
Q

Trial Balance May 31, 2022 In addision to those accounts listed on the trial balance....

Accounting
Q

Mary Walker, president of Rusco Company, considers $29,000 to be the minimum cash balance for...

Accounting
Q

P9-63A (similar to) Question Help College Logos buys logo-imprinted merchandse and then sells it to...

Accounting
Q

Why is it important that accountants as individuals and accountancy as a profession maintain the...

Accounting
Q

The following transactions were selected from among those completed by Bennett Retailers in November and...

Accounting
Q

Question 1 Jon bought a bond at a purchase price of 3,500. It has an...

Finance
Q

A secured bond would require: a. a plan for paying off the...

Finance
Q

Required information (The following information applies to the questions displayed below! Penny Arcades, Inc., Is...

Accounting