# Finance

I just need one sample thank you.

The Lanford Corporation had 2008 sales of \$110 million. The other pertinent
financial data for 2008 is as follows:

2008 Sales \$110,000,000
Dividend Payout Rate 55%
Balance in Retained Earnings \$41,150,000
Common Stock \$11,000,000
Long-Term Bonds \$3,550,000
Notes Payable \$13,600,000
Profit Margin after Taxes 8.0%

The BALANCE SHEET items that vary directly with sales are as follows:
Cash 7%
Accounts Receivable 15%
Inventory 28%
Net Fixed Assets 36%
Accounts Payable 14%
Accruals 9%

The Comon Stock and the company's Long-Term Bonds will remain constant from 2008 through 2009 at \$11 million and \$3.55 million, respectiviely.

a. How much additional external capital will be required for next year if sales increase 15%? (Assume that the company is already running at full capacity).

b. What will happen to external fund requirements if Lanford reduces the payou ratio, grows at a slower rate, or suffers a decline in its profit margin? Discuss each of these separately.

c. Prepare a pro forma balance sheet for 2009 assuming that any external funds being acquired will be in the form of Notes Payable. Disregard the information in part
B. in answering this question. Use the information in part A. to develop your pro forma balance sheet.

1. 👍
2. 👎
3. 👁

## Similar Questions

1. ### Statistics

Given the following information, determine the 68.3 percent, 95.5 percent, and 99.7 percent confidence intervals. overbar above X equals 4.33 comma SE sub m equals 3 I've looked at the table as recommended. I just do not

2. ### biology

Which of the following properly describes an ion? an atom that has lost or gained one or more neutrons an atom or molecule that has lost or gained one or more electrons an atom or molecule that has lost or gained one or more

3. ### MAth

Determine when the Hamilton method gives an Alabama paradox and who lost the representative. Increase the committee size by one seat at a time, starting from an 8-member committee. Given: City A, City B, and City C are cooperating

4. ### math

If Jo is supposed to read one-half of a 100-page book for an English assignment and she has finished 38 pages, what percent of the assignment does she have left to do? Please answer and explain.

1. ### math

On each of four consecutive plays in a football game, a team lost 11 yd. If lost yardage is interpreted as a negative integer, write the information as a product of integers and determine the total number of yards lost.

2. ### pre-algebra

A football team gained 4 yd, lost 2 yd, gained 11yd, lost 8 yd, and then lost 9 yd. Find the net gain or loss.

3. ### Physics

For non-ideal oscillators (such as a real pendulum) energy is lost and the amplitude (which is the maximum displacement) is no longer constant but also decreases with time. How fast the energy lost is described by a TIME CONSTANT,

4. ### Network theory assignment

I want to do a assignment on tomorrow for subject.how i submit the assignment

1. ### Is this cheating?

Hi so Friday, my friend wasn't quite understanding the assignment and nobody was allowed to talk in the classroom. So, she just asked to see my notebook to look if she was doing it right. The teacher walks over, automatically

2. ### Math

Jared's football team lost a total of 12 yards during 4 plays of the game. They lost the same number of yards during each of the plays. What is an integer that can represent the number of yards lost during each play?

3. ### Mathematics

Hi guys! I just had a overdue assignment in math. I am a little lost in this topic, so I was hoping someone could help me out? Thanks! Tell whether each equation is true, false, or open. Explain. 1. 6 - t = 12 2. 7 + (-5) = 12 3.

4. ### English

Hello could anyone check my work on the following question? Read the two sentences He completed his assignment. Then he submitted it to his teacher. Which sentence combines the two sentences using a past participle? A.) He