The most recent financial statements for Scott, Inc., appear below. Sales for 2020 are projected to grow by 25 percent. Interest expense will remain constant; the tax rate and the dividend payout rate also will remain constant. Costs, other expenses, current assets, fixed assets, and accounts payable increase spontaneously with sales.The most recent financial statements for Scott, Inc., appear below. Sales for 2020 are
projected to grow by 25 percent. Interest expense will remain constant; the tax rate and
the dividend payout rate also will remain constant. Costs, other expenses, current
assets, fixed assets, and accounts payable increase spontaneously with sales.
SCOTT, INC.
2019 Income Statement
Sales
$764,000
Costs
620,000
Other expenses
29,500
Earnings before interest
and taxes
Interest expense
$ 114,500
14.400
Taxable income
Taxes (219)
$ 100,100
21.021
Net income
$ 79,079
Dividends
Addition to retained
earnings
$25.540
53.539
SCOTT, INC
Balance Sheet as of December 31, 2019
Assets
Llabilities and Owners’ Equity
Current assets
Current liabilities
Cash
$ 25,340 Accounts payable
$ 61,800
Accounts receivable 34,770 Notes payable
17,900
Inventory
71.510
Total
$ 79.700
Total
$ 131,620 Long-term debt
$ 112.000
Owners’ equity
Common stock and paid-in
surplus
Retained earnings
Fixed assets
Net plant and
equipment
$ 111,000
$ 221,000
49.920
Total
$ 160,920
Total assets
$352,620
Total abilities and owners
equity
$352,620
What is the EFN If the firm wishes to keep its debt-equity ratio constant? Do not round
Intermediate calculations and round your answer to the nearest whole dollar amount,
6.9., 32.)
EFN
Purchase answer to see full
attachment
Why Choose Us
- 100% non-plagiarized Papers
- 24/7 /365 Service Available
- Affordable Prices
- Any Paper, Urgency, and Subject
- Will complete your papers in 6 hours
- On-time Delivery
- Money-back and Privacy guarantees
- Unlimited Amendments upon request
- Satisfaction guarantee
How it Works
- Click on the “Place Order” tab at the top menu or “Order Now” icon at the bottom and a new page will appear with an order form to be filled.
- Fill in your paper’s requirements in the "PAPER DETAILS" section.
- Fill in your paper’s academic level, deadline, and the required number of pages from the drop-down menus.
- Click “CREATE ACCOUNT & SIGN IN” to enter your registration details and get an account with us for record-keeping and then, click on “PROCEED TO CHECKOUT” at the bottom of the page.
- From there, the payment sections will show, follow the guided payment process and your order will be available for our writing team to work on it.