Mickey Inc. is about to open a new amusement park and expects sales to grow by 50% next year. The income statement and balance sheet for the previous year are given below (in $ million): Line item Previous
Sales 125
Operating costs 87.5
Depreciation 25
EBIT 12.5
Interest 5
Taxes 2.625
Net income 4.875
- Dividends 1.95
- Addition to retained earnings 2.925
Interest expenses and the tax rate and payout ratio will stay the same.

Assets Liabilities and Equity
Cash 16 Accounts payable 21
Accounts receivable 8.6 Accrued wages 12
Inventory 19 Notes payable 2.8
Current assets 43.6 Current liabilities 35.8
Machines 34 Long-term debt 48
Real estate 21 Total liabilities 83.8
Fixed assets 55 Total equity 14.8
Total assets 98.6 Liabilities & equity 98.6
Accounts payable and accrued wages are expected to increase at the same rate as sales. Assets would grow at the same rate if the company operated at full capacity, but capacity utilization was only 89% last year.

Part 1

What are projected assets for next year (in $ million)?

Part 2

What are projected current liabilities (in $ million)?

Part 3

What is projected equity for next year (in $ million)?

Part 4

What is the external funding required (EFR) for next year (in $ million)?

Daniel owns 100 shares of abc corporation's common stock. abc uses the fair value option, and recent declines in the firm's credit rating have caused the value of the firm's outstanding bonds payable to drop by 10%. daniel feels this is good news, but he wants to know what you think about the situation. which of the following represents your best response? a : "this situation may be positive for you in that the change in abc's credit standing indicates that the value of the firm's assets is likely increasing. however, the drop in bond value may negate any positive effects on your bottom line, because it means your claim on the firm's assets is simultaneously decreasing." b : "actually, this is bad news all around. the drop in the value of abc's bonds payable means shareholders' claims on the firm's assets have decreased. moreover, abc's declining credit rating means that the firm's assets are probably also dropping in value, thus magnifying your losses even more." c : "on the surface, this seems like good news because it means your claim on the firm's assets has increased. however, the drop in creditworthiness may also indicate that abc's assets are declining in value, thus offsetting any gains associated with the drop in bonds payable." d : "you're right! this is good news because it means that abc's debtholders have a decreased claim on the firm's assets. as a result, the firm's existing shareholders"like you"have seen their claim on the firm's assets increase."

Ajewelry direct sales company pays its consultants based on recruiting new members. question 1 options: the company is running a pyramid scheme, which is illegal. the company is running a pyramid scheme, which is legal. the company has implemented a legal and ethical plan for growth. the company uses this method of compensation to reduce the fee for the product sample kit.

Match the different financial task to their corresponding financial life cycle phases