How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Bizhelp Your Own Question
Bizhelp, CPA
Category: Homework
Satisfied Customers: 5884
Experience:  Bachelors Degree and CPA with Accounting work experience
Type Your Homework Question Here...
Bizhelp is online now
A new question is answered every 9 seconds

Apex Roofing Inc. has the following balance sheet (in millions

Customer Question

Apex Roofing Inc. has the following balance sheet (in millions of dollars):
Current assets $3.0
Net fixed assets 4.0
Total assets $7.0

Accounts payable $1.2
Notes payable 0.8
Accrued wages and taxes 0.3
Long-term debt 1.2
Common equity 1.5
Retained earnings 2.0

Total liabilities & equities $7.0
Last year's sales were $10 million, and Apex estimates it will need to raise $2 million in new debt and equity next year. You have identified the following facts: (1) it pays out 30% of earnings as dividends; (2) a profit margin of 4% is projected; (3) fixed assets were used to full capacity; and (4) assets and spontaneous liabilities as shown on last year's balance sheet are expected to grow proportionally with sales. If the above assumptions hold, what sales growth rate is the firm anticipating? (Hint: You can use the AFN formula to help answer this problem.)
Submitted: 5 years ago.
Category: Homework
Expert:  Bizhelp replied 5 years ago.

You need to spend $3 to view this post. Add Funds to your account and buy credits.