Financing Deficit
Garlington Technologies Inc.'s 2016 financial statements are
shown below:
Balance Sheet as of December...
Financing Deficit
Garlington Technologies Inc.'s 2016 financial statements are
shown below:
Balance Sheet as of December 31, 2016
Cash
$ 180,000
Accounts payable
$ 360,000
Receivables
360,000
Notes payable
156,000
Inventories
720,000
Line of credit
0
Total current assets
$1,260,000
Accruals
180,000
Fixed assets
1,440,000
Total current liabilities
$ 696,000
Common stock
1,800,000
Retained earnings
204,000
Total assets
$2,700,000
Total liabilities and equity
$2,700,000
Income Statement for December 31, 2016
Sales
$3,600,000
Operating costs
3,279,720
EBIT
$ 320,280
Interest
18,280
Pre-tax earnings
$ 302,000
Taxes...
Problem 12-09
Financing Deficit
Garlington Technologies Inc.'s 2016 financial statements are
shown below:
Balance Sheet as...
Problem 12-09
Financing Deficit
Garlington Technologies Inc.'s 2016 financial statements are
shown below:
Balance Sheet as of December 31, 2016
Cash
$ 180,000
Accounts payable
$ 360,000
Receivables
360,000
Notes payable
156,000
Inventories
720,000
Line of credit
0
Total current assets
$1,260,000
Accruals
180,000
Fixed assets
1,440,000
Total current liabilities
$ 696,000
Common stock
1,800,000
Retained earnings
204,000
Total assets
$2,700,000
Total liabilities and equity
$2,700,000
Income Statement for December 31, 2016
Sales
$3,600,000
Operating costs
3,279,720
EBIT
$ 320,280
Interest
18,280
Pre-tax earnings...
Garlington Technologies Inc.'s 2019 financial statements are
shown below:
Income Statement for December 31, 2019
Sales...
Garlington Technologies Inc.'s 2019 financial statements are
shown below:
Income Statement for December 31, 2019
Sales
$4,000,000
Operating costs
3,200,000
EBIT
$ 800,000
Interest
120,000
Pre-tax earnings
$ 680,000
Taxes (25%)
170,000
Net income
510,000
Dividends
$ 190,000
Balance Sheet as of December 31, 2019
Cash
$ 160,000
Accounts payable
$ 360,000
Receivables
360,000
Line of credit
0
Inventories
720,000
Accruals
200,000
Total CA
$1,240,000
Total CL
$ 560,000
Fixed assets
4,000,000
Long-term bonds
1,000,000
Total Assets
$5,240,000
Common stock
1,100,000
RE
2,580,000
Total L&E
$5,240,000...
Financing Deficit
Garlington Technologies Inc.'s 2019 financial statements are
shown below:
Income Statement for December 31,...
Financing Deficit
Garlington Technologies Inc.'s 2019 financial statements are
shown below:
Income Statement for December 31, 2019
Sales
$4,000,000
Operating costs
3,200,000
EBIT
$ 800,000
Interest
120,000
Pre-tax earnings
$ 680,000
Taxes (25%)
170,000
Net income
510,000
Dividends
$ 190,000
Balance Sheet as of December 31, 2019
Cash
$ 160,000
Accounts payable
$ 360,000
Receivables
360,000
Line of credit
0
Inventories
720,000
Accruals
200,000
Total CA
$1,240,000
Total CL
$ 560,000
Fixed assets
4,000,000
Long-term bonds
1,000,000
Total Assets
$5,240,000
Common stock
1,100,000
RE
2,580,000
Total...
Financing Deficit Garlington Technologies Inc.'s 2019 financial
statements are shown below:
Income Statement for December 31,...
Financing Deficit Garlington Technologies Inc.'s 2019 financial
statements are shown below:
Income Statement for December 31, 2019
Sales $4,000,000
Operating costs 3,200,000
EBIT $ 800,000
Interest 120,000
Pre-tax earnings $ 680,000
Taxes (25%) 170,000
Net income 510,000
Dividends $ 190,000
Balance Sheet as of December 31, 2019
Cash $ 160,000
Accounts payable $ 360,000
Receivables 360,000
Line of credit 0
Inventories 720,000
Accruals 200,000
Total CA $1,240,000
Total CL $ 560,000
Fixed assets 4,000,000
Long-term bonds 1,000,000
Total Assets $5,240,000...
LONG-TERM FINANCING NEEDED At year-end 2019,
total assets for Arrington Inc. were $1.8 million and accounts...
LONG-TERM FINANCING NEEDED At year-end 2019,
total assets for Arrington Inc. were $1.8 million and accounts
payable were $450,000. Sales, which in 2019 were $3.0 million, are
expected to increase by 25% in 2020. 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 $500,000 in 2019, and retained
earnings...
The most recent financial statements for Assouad, Inc., are
shown here:
Income Statement
Balance Sheet
Sales...
The most recent financial statements for Assouad, Inc., are
shown here:
Income Statement
Balance Sheet
Sales
$3,900
Current assets
$3,500
Current liabilities
$960
Costs
2,000
Fixed assets
5,800
Long-term debt
3,490
Taxable income
$1,900
Equity
4,850
Taxes (24%)
456
Total
$9,300
Total
$9,300
Net income
$1,444
Assets, costs, and current liabilities are proportional to
sales. Long-term debt and equity are not. The company maintains a
constant 50 percent dividend payout ratio. As with every other firm
in its industry, next...
At year-end 2019, total assets for Arrington Inc. were $1.9
million and accounts payable were $360,000....
At year-end 2019, total assets for Arrington Inc. were $1.9
million and accounts payable were $360,000. Sales, which in 2019
were $2.30 million, are expected to increase by 15% in 2020. 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 $355,000 in
2019, and retained earnings were $455,000. Arrington...
At year-end 2019, total assets for Arrington Inc. were $1.9
million and accounts payable were $370,000....
At year-end 2019, total assets for Arrington Inc. were $1.9
million and accounts payable were $370,000. Sales, which in 2019
were $2.20 million, are expected to increase by 30% in 2020. 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 $360,000 in
2019, and retained earnings were $470,000. Arrington...