Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. at year-end 2016, total assets for arrington inc,

At year-end 2016, total assets for Arrington Inc, were $1.4 million and accounts payable were...

70.2K

Verified Solution

Question

Finance

image
At year-end 2016, total assets for Arrington Inc, were $1.4 million and accounts payable were $410,000.5ales, which in 2016 were $2.8 million, are expected to increase by 20% in 2017 . Total assets and accounts payable are proportional to sales, and that relationship will be maintained; that is, they will grow at the same rate as sales. Arrington typically uses no current liabilities other than accounts payable. Common stock amounted to $440,000 in 2016 , and retained earnings were $305,000. Arrington plans to sell new common stock in the amount of $60,000. The firm's profit margin on sales is 3%;50% of earnings will be retained. a. What were Arrington's total liabilities in 2016? Write out your answer completely. For example, 25 million should be entered as 25,000,000. Round vour answer to the nearest cent. b. How much new long-term debt financing will be needed in 2017? Write out your answer completely. For example, 25 million should be entered as 25,000,000. Do not round your intermediate calculations. Round your answer to the nearest cent. (Hint: AFN - New stock = New long-term debt.) 5

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: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Question: What exactly makes the FOIL method similar to using the Distributive Property? Try rewriting an...

Basic Math
Q

Distance 3.4 1.8 4.6 2.3 3.1 5.5 0.7 3.0 Damage 26.2 17.8 31.3 23.1 27.5 36.0 14.1 22.3 Distance 2.6 4.3 2.1 1.1 6.1 4.8 3.8 Damage 19.6 31.3 24.0 17.3 43.2 36.4 26.1 Does the y-intercept for this regression model have practical meaning in this context? If so, interpret...

Basic Math
Q

Please use this paper to answer both the sub section question in detail please. this paper...

Biology
Q

Identify three challenges a manager faces in motivating employees today as opposed to 50 years ago....

General Management
Q

Find the unit vectors associated with the following vectors:a) <0,4>b) -3,0>c) <-3,4>d) < 2,1>e) <...

Basic Math
Q

3 The table below shows the number of male and female students enrolled in nursing...

Statistics
Q

Graph the linear equation.y = -2Use the graphing tool to graph the linear equation.*Click toenlargegraph

Algebra
Q

I'm uncertain to how to about calculating the maximum contribution margin that could be earned....

Accounting
Q

Swifty, Ltd. manufactures shirts, which it sells to customers for embroidering with various slogans and...

Accounting
Q

please help me! Prepare Sandhill's journal entries to record...

Accounting
Q

9-7 Profitability index Given the discount rate and the future cash...

Finance
Q

i need payback period for project A,B, and C Problem...

Finance