Answered You can hire a professional tutor to get the answer.
Show your work. The Landis Corporation had 2004 sales of $100 million. The balance sheet items that vary directly with sales and the profit margin...
Show your work. The Landis Corporation had 2004 sales of $100 million. The balance sheet items that vary directly with sales and the profit margin are as follows:PercentInventory……………………………………..25%Net Fixed Assets…………………………..40%Accounts Payable…………………………15%Accruals……………………………………….10%Profit Margin after Taxes………………6%The Divided payment rate is 50 percent of earnings, and the balance in retained earnings at the beginning of the year 2005was $33 million. Common stock and the company’s long term bonds are constant at $10 million and $5 million, respectively. Notes payable are currently $12 million.a.How much additional external capitol will be required for next year if sales increase 15 percent? (Assume that the company is already operating at full capacity)b.What will happen to external fund requirements if Landis Corporation reduces the payout ratio, grows at a slower rate, or suffers a decline in its profit margin? Discuss each of these separately. c.Prepare a pro forma balance sheet for 2005 assuming that any external funds being acquired will be in the form of notes payable. Disregard the information in part b in answering this question (that is, use the original information and part a in constructing your pro forma balance sheet).
