This paper circulates around the core theme of Long-Term Financing Needed At year-end 2013, Wallace Landscaping’s total assets were $1.8 million 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.
Long-Term Financing Needed At year-end 2013, Wallace Landscaping’s total assets were $1.8 million… 1 answer below » Long-Term Financing Needed At year-end 2013, Wallace Landscaping’s total assets were $1.8 million and its accounts payable were $350,000. Sales, which in 2013 were $2.5 million, are expected to increase by 20% in 2014. Total assets and accounts payable are proportional to sales, and that relationship will be maintained. Wallace typically uses no current liabilities other than accounts payable. Common stock amounted to $495,000 in 2013, and retained earnings were $300,000. Wallace has arranged to sell $105,000 of new common stock in 2014 to meet some of its financing needs. The remainder of View complete question » Long-Term Financing Needed At year-end 2013, Wallace Landscaping’s total assets were $1.8 million and its accounts payable were $350,000. Sales, which in 2013 were $2.5 million, are expected to increase by 20% in 2014. Total assets and accounts payable are proportional to sales, and that relationship will be maintained. Wallace typically uses no current liabilities other than accounts payable. Common stock amounted to $495,000 in 2013, and retained earnings were $300,000. Wallace has arranged to sell $105,000 of new common stock in 2014 to meet some of its financing needs. The remainder of its financing needs will be met by issuing new long-term debt at the end of 2014. (Because the debt is added at the end of the year, there will be no additional interest expense due to the new debt.) Its profit margin on sales is 7%, and 40% of earnings will be paid out as dividends. What was Wallace’s total long-term debt in 2013? Round your answer to the nearest dollar. $ What were Wallace’s total liabilities in 2013? Round your answer to the nearest dollar. $ How much new long-term debt financing will be needed in 2014? (Hint: AFN – New stock = New long-term debt.) Round your answer to the nearest dollar. $ View less » Sep 11 2015 01:26 PM
