Question

Jackson Co. has the following balance sheet as of December 31, 2004. Assets: Claims: Current assets $ 600,000 Accounts payable $ 100,000 Fixed assets 400,000 Accruals 100,000 Notes payable 100,000 Total current liabilities $ 300,000 Long-term debt 300,000 Total equity 400,000 Total assets $1,000,000 Total claims $1,000,000 In 2004, the company reported sales of $5 million, net income of $100,000, and dividends of $60,000. The company anticipates its sales will increase 20 percent in 2005 and its dividend payout will remain at 60 percent. Assume the company is at full capacity, so its assets and spontaneous liabilities will increase proportionately with an increase in sales. Assume the company uses the AFN formula and all additional funds needed (AFN) will come from issuing new long-term debt. Given its forecast, how much long-term debt will the company have to issue in 2005?

          Jackson Co. has the following balance sheet as of December 31, 2004.

Assets:
Claims:
Current assets $ 600,000 Accounts payable $ 100,000
Fixed assets 400,000 Accruals 100,000
Notes payable 100,000
Total current liabilities $ 300,000
Long-term debt 300,000
Total equity 400,000
Total assets $1,000,000 Total claims $1,000,000

In 2004, the company reported sales of $5 million, net income of $100,000, and dividends of $60,000. The company anticipates its sales will increase 20 percent in 2005 and its dividend payout will remain at 60 percent. Assume the company is at full capacity, so its assets and spontaneous liabilities will increase proportionately with an increase in sales.

Assume the company uses the AFN formula and all additional funds needed (AFN) will come from issuing new long-term debt. Given its forecast, how much long-term debt will the company have to issue in 2005?

Jackson Co. has the following balance sheet as of December 31, 2004.

Assets:
Claims:
Current assets 600,000 Accounts payable 100,000
Fixed assets 400,000 Accruals 100,000
Notes payable 100,000
Total current liabilities 300,000
Long-term debt 300,000
Total equity 400,000
Total assets1,000,000 Total claims 1,000,000

In 2004, the company reported sales of5 million, net income of 100,000, and dividends of60,000. The company anticipates its sales will increase 20 percent in 2005 and its dividend payout will remain at 60 percent. Assume the company is at full capacity, so its assets and spontaneous liabilities will increase proportionately with an increase in sales.

Assume the company uses the AFN formula and all additional funds needed (AFN) will come from issuing new long-term debt. Given its forecast, how much long-term debt will the company have to issue in 2005?

Added by Jsp P.

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