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Activity 1.Name : Chrismae Santos Direction: Provide what is asked. Show your solution. Weatherford Industries Inc. has the following ratios: A 0 */S 0 = 1; L 0 */S 0 = 0; profit margin = 0; and payout ratio = 0, or 45%. Sales last year were $100 million. Assuming that these ratios will remain const...

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Ac t i v i t y1 . 3 . 2 Na me: Ch r i s ma eSa n t o s Di r e c t i o n : Pr o v i d ewh a t i sa s k e d . Sh o wy o u r s o l u t i o n .

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L o o k i n ga h e a dt ot h ef o l l o wi n gy e a r , t h ec o mp a n y ’ sCF Oh a sa s s e mb l e dt h i si n f o r ma t i o n :  Y e a r e n ds a l e sa r ee x p e c t e dt ob e1 0 %h i g h e r t h a nt h e$ 3b i l l i o ni ns a l e sg e n e r a t e dl a s t y e a r .  Y e a r e n do p e r a t i n gc o s t s , e x c l u d i n gd e p r e c i a t i o n , a r ee x p e c t e dt oe q u a l 8 0 %o f y e a r e n ds a l e s .  De p r e c i a t i o ni se x p e c t e dt oi n c r e a s ea t t h es a mer a t ea ss a l e s .  I n t e r e s t c o s t sa r ee x p e c t e dt or e ma i nu n c h a n g e d .  T h et a xr a t ei se x p e c t e dt or e ma i na t 4 0 %. Ont h eb a s i so f t h a t i n f o r ma t i o n , wh a t wi l l b et h ef o r e c a s t f o rRo b e r t s ’ y e a r e n dn e t i n c o me ?1 5 60 7 00 0 0 7 . Pa l a d i nF u r n i s h i n g sg e n e r a t e d$ 4mi l l i o ni ns a l e sd u r i n g2 0 1 8 ,a n di t sy e a r e n dt o t a l a s s e t swe r e$ 3 . 2mi l l i o n .Al s o ,a ty e a r e n d2 0 1 8 ,c u r r e n tl i a b i l i t i e swe r e$ 5 0 0 , 0 0 0 ,c o n s i s t i n go f$ 2 0 0 , 0 0 0o fn o t e sp a y a b l e ,$ 2 0 0 , 0 0 0o fa c c o u n t sp a y a b l e ,a n d $ 1 0 0 , 0 0 0o fa c c r u e dl i a b i l i t i e s .L o o k i n ga h e a dt o2 0 1 9 ,t h ec o mp a n ye s t i ma t e st h a ti t sa s s e t smu s ti n c r e a s eb y$ 0 . 8 0f o r e v e r y$ 1 . 0 0i n c r e a s ei ns a l e s .Pa l a d i n ’ sp r o fi t ma r g i ni s3 %, a n di t sr e t e n t i o nr a t i oi s5 0 %. Ho wl a r g eo f as a l e si n c r e a s ec a n t h ec o mp a n ya c h i e v ewi t h o u t h a v i n gt or a i s ef u n d se x t e r n a l l y ?8 45 0 7 . 0 4

So l ut i ons :...