Question 1 define each of the following terms. a.operating plan,

Question 1

Define each of the following terms.

a.Operating plan, financial plan

b. Spontaneous liabilities, profit margin, payout

c.Additional funds needed (AFN; AFN equations capital intensity ratios, self-supporting growth rate.

d. Forecasted financial statement approach using percent of sales

e. Exceed capacity; lumpy assets; economies of scale

f. Full capacity sales target fixed assets/sales ratios required level of fixed assets


Question 2

Name five key factors that affect a firm’s external financing requirements?


Question 3

Maggie’s muffins, Inc., generated $5,000,000 in sales during 2013, and its year-end total were $2,500,000.  Also, at year-end 2013, current liabilities were $1,000,000, consisting of $300,000 of notes payable, $500,000 of accounts payable, and $200,000 of accruals.  Looking ahead to 2014, the company estimates that its assets must increase at the same rate as sales, its spontaneous liabilities will increase at the same rate as sales, its profit margin will increase by %7 and its payout ratio will be %80.  How large a sales increase can the company achieve without having to raise funds externally—that is, what is its self-supporting growth rate? 


Question 4

The Booth Company’s sales are forecasted to double from $1,000 in 2013 to $2,000 in 2014.  Here is the December 31 2013, balance sheet:


Cash                                        $  100              Accounts payable                                $   50

Accounts receivable                    200              Notes payable                                         150

Inventories                                  200              Accruals                                                    50

Net Fixed assets                          500              Long-term debt                                        400

                                                                        Common Stock                                        100

                                                ______            Retained earnings                                    250

    Total assets                           $1,000               Total liabilities and equity                $1,000


Booth’s fixed assets were used to only 50% of capacity during 2013, but its current assets were at their proper levels in relation to sales.  All assets except fixed assets must increase at the same rate as sales, and fixed assets would also have to increase at the same rate if the current excess capacity did not exist.  Booth’s after-tax profit margin is forecasted to be 5% and its payout ratio to be 60%.  What is booth’s additional funds needed (AFN) for the coming year?

Calculate your paper price
Pages (550 words)
Approximate price: -

Why Choose Us

Quality Papers

We value our clients. For this reason, we ensure that each paper is written carefully as per the instructions provided by the client. Our editing team also checks all the papers to ensure that they have been completed as per the expectations.

Professional Academic Writers

Over the years, our Acme Homework has managed to secure the most qualified, reliable and experienced team of writers. The company has also ensured continued training and development of the team members to ensure that it keep up with the rising Academic Trends.

Affordable Prices

Our prices are fairly priced in such a way that ensures affordability. Additionally, you can get a free price quotation by clicking on the "Place Order" button.

On-Time delivery

We pay strict attention on deadlines. For this reason, we ensure that all papers are submitted earlier, even before the deadline indicated by the customer. For this reason, the client can go through the work and review everything.

100% Originality

At Essay USA, all papers are plagiarism-free as they are written from scratch. We have taken strict measures to ensure that there is no similarity on all papers and that citations are included as per the standards set.

Customer Support 24/7

Our support team is readily available to provide any guidance/help on our platform at any time of the day/night. Feel free to contact us via the Chat window or support email:

Try it now!

Calculate the price of your order

We'll send you the first draft for approval by at
Total price:

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

Essay USA has stood as the world’s leading custom essay writing services providers. Once you enter all the details in the order form under the place order button, the rest is up to us.


Essay Writing Services

At Essay USA, we prioritize on all aspects that bring about a good grade such as impeccable grammar, proper structure, zero-plagiarism and conformance to guidelines. Our experienced team of writers will help you completed your essays and other assignments.


Admission and Business Papers

Be assured that you’ll definitely get accepted to the Master’s level program at any university once you enter all the details in the order form. We won’t leave you here; we will also help you secure a good position in your aspired workplace by creating an outstanding resume or portfolio once you place an order.


Editing and Proofreading

Our skilled editing and writing team will help you restructure you paper, paraphrase, correct grammar and replace plagiarized sections on your paper just on time. The service is geared toward eliminating any mistakes and rather enhancing better quality.


Technical papers

We have writers in almost all fields including the most technical fields. You don’t have to worry about the complexity of your paper. Simply enter as much details as possible in the place order section.