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WENG WAI LILIS SURJANA BT NASIB NORELIA EDAYU ABD DERAMAN QUESTION 10 APPLYING PERCENTAGE OF SALES MATERNITY BLISS, INC. Balance sheet
Asset s Current assets Cash A/C Receivable Inventory Total Fixed assets Net plant and equipment 3000 0 103 Percentage of sales (%)
Liabilities and Owner's Equity Current liabilities A/C Payable Notes Payable Total Long-term debt Owner's equity Common stock and paidin surplus Retained earnings Total 1500 0 2025 1702 5 4702 5 n/a Percentage of sales (%)
12 26 21 59
Total assets
4702 5
162
earnings Total Total assets 54078.7 5 7054 Total liabilities and owner's equity External financing needed 1182.78 -1182.78 24811.5 3 55261.5 3 8236.53 7786.53
QUESTION 12 INTERNAL GROWTH ROA = 13% b = 78% (100%-22%) Internal Growth Rate = ROA * b 1-ROA*b = 0.13*0.78 1-(0.13*0.78) = 11.28% QUESTION 15 SUSTAINABLE GROWTH Profit margin = 8.9% *ROE = 0.089*0.55*1.6 Capital intensity ratio = 0.55 = 0.078 Debt-equity ratio = 0.60 *1.6 = Equity multiplier Net income = $29000 = 1+Debt-equity ratio Dividends = $12000 Sustainable growth rate = ROE*b 1-ROE*b = 0.078*17/29 1-(0.078*17/29) = 0.0479 @ 4.8% QUESTION 16 FULL-CAPACITY SALES Fixed asset capacity = 85% Current sales = KRW 510000 Full-capacity sales = 510 000 0.85 = KRW600000 So,
= 600000-510000 100% 510000 = 17.6% This tells us that sales could increase by almost 17.6%from KRW 510000 to KRW 600000 before any new fixed assets would be needed.
87400 165600
11400 21600
83750 156000
9750
418600
54600
21000
333231. 2 593981. 2
76231.2 85981.2
Total assets
584200
76200
total
= 80% = 90500 80% = PLN 1131200 Ratio of fixed assets to sales =364000 1131200 =0.32 Fixed asset =905000*115%*0.32 =PLN 333040 Compared to the PLN 418600 we originally projected this is PLN 85560 less, so EFN is PLN 95341.2(-PLN9781.2-PLN85560)