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The most recent financial statements for Beneke Fabricators,Inc., follow. Sales for 2012

The most recent financial statements for Beneke Fabricators,Inc., follow. Sales for 2012

The most recent financial statements for Beneke Fabricators,Inc., follow. Sales for 2012 are projected to grow by 25 percent.Interest expense will remain constant; the tax rate and thedividend payout rate will also remain constant. Costs, otherexpenses, current assets, fixed assets and accounts payableincrease spontaneously with sales.

 

BENEKE FABRICATORS, INC.

2011 Income Statement

  Sales

 

 

 

$

758,000

 

  Costs

 

 

 

 

593,000

 

  Other expenses

 

 

 

 

14,000

 

 

 

 

 

 

 

 

  Earnings beforeinterest and taxes

 

 

 

$

151,000

 

  Interest paid

 

 

 

 

10,000

 

 

 

 

 

 

 

 

  Taxable income

 

 

 

$

141,000

 

  Taxes (40%)

 

 

 

 

56,400

 

 

 

 

 

 

 

 

  Net income

 

 

 

 

84,600

 

 

 

 

 

 

 

 

  Dividends

$

33,840

 

 

 

 

  Addition to retainedearnings

 

50,760

 

 

 

 

 

             

 

BENEKE FABRICATORS, INC.

Balance Sheet as of December 31, 2011

Assets

 

Liabilities and Owners’ Equity

 

  Current assets

 

 

 

  Currentliabilities

 

 

 

    Cash

$

21,740

 

    Accountspayable

$

55,900

 

    Accountsreceivable

 

34,060

 

    Notespayable

 

15,100

 

 

 

 

 

 

 

 

 

    Inventory

 

71,020

 

      Total

$

71,000

 

 

 

 

 

 

 

 

 

      Total

$

126,820

 

  Long-term debt

$

102,000

 

  Fixed assets

 

 

 

  Owners’ equity

 

 

 

    Netplant and equipment

$

275,000

 

    Commonstock and paid-in surplus

$

102,000

 

 

 

 

 

    Retainedearnings

 

126,820

 

 

 

 

 

 

 

 

 

 

 

 

 

      Total

$

228,820

 

 

 

 

 

 

 

 

 

  Total assets

$

401,820

 

  Total liabilitiesand owners’ equity

$

401,820

 

 

 

 

 

 

 

 

 

 

               

 

If the firm is operating at full capacity and no new debt orequity is issued, what external financing is needed to support the25 percent growth rate in sales? (Do not round intermediatecalculations.)

Abhinav 02-Dec-2019

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