SLM, Inc., with sales of $1,000 has the following balance sheet:


Question Description:

20

SLM, Inc., with sales of $1,000 has the following balance sheet: 1 answer below ยป SLM, Inc., with sales of $1,000 has the following balance sheet: Assets: Accounts Receivable $200 Inventory $400 Plant $800 Total of Assets: $1400 Liabilities and Equity: Trade accounts payable $200 Long term debt $600 Equity $600 Total of Liabilities and Equity: $1400 It earns 10% on sales (after taxes) and pays no dividends. a. Determine the balance sheet entries for sales of $1,500 using the percent of sales method of forecasting. b. Will the firm need external financing to grow to sales of $1,500? c. Construct as the new balance sheet and use newly issued long-term debt to cover any financial deficiency. Dec 10 2013 05:49 PM

Answer

20