Owen's Electronics has nine operating plants in seven southwestern states. Sales for last year were...
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Accounting
Owen's Electronics has nine operating plants in seven southwestern states. Sales for last year were $100 million, and the balance sheet at year-end is similar in percentage of sales to that of previous years (and this will continue in the future). All assets (including fixed assets) and current liabilities will vary directly with sales. The firm is working at full capacity.
Balance Sheet
(in $ millions)AssetsLiabilities and Stockholders' EquityCash$11Accounts payable$16Accounts receivable25Accrued wages8Inventory28Accrued taxes10Current assets$64Current liabilities$34Fixed assets46Notes payable12Common stock18Retained earnings46Total assets$110Total liabilities and stockholders' equity$110
Owen's Electronics has an aftertax profit margin of 10 percent and a dividend payout ratio of 60 percent.
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