Problem 16.11 – Charlie’s Cycles Inc.
Fundamentals of Financial Management, Concise
Brigham and Houston
09th Edition and 10th Edition
Calculate the year-end inventory level and its inventory turnover ratio.
Calculate the year-end inventory level and its inventory turnover ratio.
Determine sales at full capacity, the target assets/sales ratio and the increase in fixed assets.
Forecast notes payable and long-term debt, the growth rate whereby additional financing requirements would equal exactly zero.
Determine the percentage increase in sales that would not need an increase in fixed assets, and then determine the balances of notes payable, bonds, common stock, and retained earnings.