This paper circulates around the core theme of Gulf Controls, Inc., has a net profit margin of 10 percent and earnings after taxes together with its essential aspects. It has been reviewed and purchased by the majority of students thus, this paper is rated 4.8 out of 5 points by the students. In addition to this, the price of this paper commences from £ 99. To get this paper written from the scratch, order this assignment now. 100% confidential, 100% plagiarism-free.
6. Tarheel Furniture Company is planning to establish a wholly owned subsidiary to manufacture… 1 answer below » 6. Tarheel Furniture Company is planning to establish a wholly owned subsidiary to manufacture upholstery fabrics. Tarheel expects to earn $1 million after taxes on the venture during the first year. The president of Tarheel wants to know what the subsidiary’s balance sheet would look like. The president believes that it would be advisable to begin the new venture with ratios that are similar to the industry average. Tarheel plans to make all sales on credit. All calculations assume a 365-day year. In your computations, you should round all View complete question » 6. Tarheel Furniture Company is planning to establish a wholly owned subsidiary to manufacture upholstery fabrics. Tarheel expects to earn $1 million after taxes on the venture during the first year. The president of Tarheel wants to know what the subsidiary’s balance sheet would look like. The president believes that it would be advisable to begin the new venture with ratios that are similar to the industry average. Tarheel plans to make all sales on credit. All calculations assume a 365-day year. In your computations, you should round all numbers to the nearest $1,000. Based upon the industry average financial ratios presented here, complete the projected balance sheet for Tarheel’s upholstery subsidiary. Industry Averages Current ratio 2:1 Quick ratio 1:1 Net profit margin ratio 5% Average collection period 20 days Debt ratio 40% Total asset turnover ratio 2 times Current liabilities/stockholders’ equity 20% Cash Forecasted Upholstery Subsidiary Balance Sheet Total current liabilities Accounts receivable Inventory Total current assets Net fixed assets Total assets Long-term debt Total debt Stockholders’ equity Total liabilities and stockholders’ equity INTERMEDIATE INTERMEDIATE View less » Jan 07 2016 10:51 AM
