Assignment
1. Your company has sales of $100,000 this year and cost of goods sold of $72,000. You forecast sales to increase to $110,000 next year. Using the percent of sales method, forecast next year's cost of goods sold.
2. For the next fiscal year, you forecast net income of $50,000 and ending assets of $500,000. Your firm's payout ratio is 10%. Your beginning stockholders' equity is $300,000 and your beginning total liabilities are $120,000. Your non-debt liabilities such as accounts payable are forecasted to increase by $10,000. What is your net new financing needed for next year?
3. Using the information in the following table, calculate this company's:
Net Income 50,000
Beginning Total Assets 400,000
Beginning Stockholders' Equity 250,000
Payout Ratio 0%
a. Internal growth rate?
b. Sustainable growth rate?
c. Sustainable growth rate if it pays out 40% of its net income as a dividend.
4. You have just landed in London with $500 in your wallet. Stopping at the foreign exchange booth, you see that pounds are being quoted at $1.95/£. For how many pounds can you exchange your $500?
5. Your firm needs to pay its French supplier €500,000. If the exchange rate is €0.65/$, how many dollars will you need to make the exchange?
Format your assignment according to the following formatting requirements:
1. The answer should be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.
2. The response also include a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.
3. Also Include a reference page. The Citations and references should follow APA format. The reference page is not included in the required page length.