1.Problem 15-4 Average Sales Forecast (LG15-3) Suppose a firm has had the following historic sales figures. Year: 2012 2013 2014 2015 2016 Sales $2,500,000 $3,750,000 $2,400,000 $2,000,000 $2,600,000 What would be the forecast for next year’s sales using the average approach? 2. Problem 15-6 Additional Funds Needed (LG15-4) Suppose that Wind Em Corp. currently has the balance sheet shown below, and that sales for the year just ended were $6.7 million. The firm also has a profit margin of 20 percent, a retention ratio of 25 percent, and expects sales of $7.7 million next year. Assets Liabilities and Equity Current assets $ 1,799,000 Current liabilities $ 2,144,670 Fixed assets 4,700,000 Long-term debt 1,650,000 Equity 2,704,330 Total assets $ 6,499,000 Total liabilities and equity $ 6,499,000 If all assets and current liabilities are expected to grow with sales, what amount of additional funds will Wind Em need from external sources to fund the expected growth? (Enter your answer in dollars not in millions.) 3. Problem 14-5 Average Payment Period (LG14-3) Assume a firm has a cash cycle of 62 days and an operating cycle of 94 days. What is its average payment period? 4. Problem 14-7 Payables Turnover (LG14-3) Assume a firm has a cash cycle of 73 days and an operating cycle of 127 days. What is its payables turnover? (Use 365 days a year. Round your answer to 2 decimal places.) 5.Problem 16-2 Capital Structure Weights (LG16-3) Suppose that Papa Bell, Inc.’s equity is currently selling for $52 per share, with 3.7 million shares outstanding. Assume the firm also has 14,000 bonds outstanding, and they are selling at 95 percent of par. What are the firm’s current capital structure weights? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Capital Structure Weights Equity % Debt 6. Problem 18-06 Calculating Costs of Issuing Debt (LG18-4) Harper’s Dog Pens, Inc. with the help of its investment bank, recently issued $200.9 million of new debt. The offer price on the debt was $1,000 per bond and the underwriter’s spread was 5 percent of the gross proceeds. Calculate the amount of capital funding Harper’s Dog Pens raised through this bond issue. (Enter your answer in dollars not in millions.) Funds received 7. Problem 18-03 Calculating Costs of Issuing Stock (LG18-4) Husker’s Tuxedo’s, Inc. needs to raise $255 million to finance its plan for nationwide expansion. In discussions with its investment bank, Husker’s learns that the bankers recommend an offer price (or gross price) of $45 per share and they will charge an underwriter’s spread of $2.00 per share. Calculate the net proceeds per share to Husker’s from the sale of stock. (Round your answer to 2 decimal places.) Net proceeds How many shares of stock will Husker’s need to sell in order to receive the $255 million needed? (Round your final answer to the nearest whole number.) Number of shares sold 8. Problem ...

1. 1.Problem 15-4 Average Sales Forecast (LG15-3)
Suppose a firm has had the following historic sales figures.
Year:
2012
2013
2014
2015
2016
Sales
$2,500,000
$3,750,000
$2,400,000
$2,000,000
$2,600,000
What would be the forecast for next year’s sales using the
average approach?
2. Problem 15-6 Additional Funds Needed (LG15-4)
Suppose that Wind Em Corp. currently has the balance sheet
shown below, and that sales for the year just ended were $6.7
million. The firm also has a profit margin of 20 percent, a
retention ratio of 25 percent, and expects sales of $7.7 million
next year.
Assets
Liabilities and Equity
Current assets
$
1,799,000

2. Current liabilities
$
2,144,670
Fixed assets
4,700,000
Long-term debt
1,650,000
Equity
2,704,330
Total assets
$
6,499,000
Total liabilities and equity
$
6,499,000
If all assets and current liabilities are expected to grow with
sales, what amount of additional funds will Wind Em need from

3. external sources to fund the expected growth? (Enter your
answer in dollars not in millions.)
3. Problem 14-5 Average Payment Period (LG14-3)
Assume a firm has a cash cycle of 62 days and an operating
cycle of 94 days.
What is its average payment period?
4. Problem 14-7 Payables Turnover (LG14-3)
Assume a firm has a cash cycle of 73 days and an operating
cycle of 127 days.
What is its payables turnover? (Use 365 days a year. Round
your answer to 2 decimal places.)
5.Problem 16-2 Capital Structure Weights (LG16-3)
Suppose that Papa Bell, Inc.’s equity is currently selling for $52
per share, with 3.7 million shares outstanding. Assume the firm
also has 14,000 bonds outstanding, and they are selling at 95
percent of par.
What are the firm’s current capital structure weights? (Do not
round intermediate calculations. Round your answers to 2
decimal places.)
Capital Structure Weights
Equity
%
Debt

4. 6. Problem 18-06 Calculating Costs of Issuing Debt (LG18-4)
Harper’s Dog Pens, Inc. with the help of its investment bank,
recently issued $200.9 million of new debt. The offer price on
the debt was $1,000 per bond and the underwriter’s spread was
5 percent of the gross proceeds.
Calculate the amount of capital funding Harper’s Dog Pens
raised through this bond issue. (Enter your answer in dollars not
in millions.)
Funds received
7. Problem 18-03 Calculating Costs of Issuing Stock (LG18-4)
Husker’s Tuxedo’s, Inc. needs to raise $255 million to finance
its plan for nationwide expansion. In discussions with its
investment bank, Husker’s learns that the bankers recommend
an offer price (or gross price) of $45 per share and they will
charge an underwriter’s spread of $2.00 per share.
Calculate the net proceeds per share to Husker’s from the sale
of stock. (Round your answer to 2 decimal places.)
Net proceeds
How many shares of stock will Husker’s need to sell in order to
receive the $255 million needed? (Round your final answer to
the nearest whole number.)

5. Number of shares sold
8. Problem 18-04 Calculating Costs of Issuing Stock (LG18-4)
Don’s Captain Morgan, Inc. needs to raise $13.00 million to
finance plant expansion. In discussions with its investment
bank, Don’s learns that the bankers recommend an offer price
(or gross proceeds) of $20.90 per share and Don’s will receive
$18.65 per share.
Calculate the underwriter’s spread per share on the
issue. (Round your answer to 2 decimal places.)
Underwriter’s spread
How many shares of stock will Don’s need to sell in order to
receive the $13.00 million it needs? (Round your answer to the
nearest whole number.)
Number of shares sold
9. Problem 17-4 Total Dividend Amount (LG17-2)
Suppose a firm has a retention ratio of 54 percent and net
income of $8.8 million. How much does it pay out in
dividends? (Enter your answer in dollars not in millions.)

6. Dividend amount
10. Problem 17-7 Stock Dividend Effects (LG17-6)
If a firm has retained earnings of $3.5 million, a common shares
account of $5.5 million, and additional paid-in capital of $11.0
million, how would these accounts change in response to a 10
percent stock dividend? Assume market value of equity is equal
to book value of equity. (Enter your answers in dollars not in
millions. Input all amounts as positive values. Indicate the
direction of the effect by selecting "increase," "decrease," or
"no change" from the drop-down menu.)
Retained earnings
to
Common stock
to
Additional paid-in capital
to
11. Problem 17-2 Payout Ratio (LG17-2)
Suppose a firm pays total dividends of $1,500,000 out of net
income of $6.0 million. What would the firm’s payout ratio
be? (Round your answer to 2 decimal places.)

7. Payout ratio
Dialog on CRISPR
As the engine roars and everything started to vibrate rapidly,
Chao nervously wipes the sweat from his forehead,
“I wonder what it’s like up there” said Chao,
as he slowly turned his head towards his bunk buddy and to his
surprise Chao’s bunk buddy was more nervous than he was.
Kenneth a well built male with average length black hair and a
face tough as nails, but as they took off Kenneth looked like an
adopted dog meeting it’s new family for the first time, scared.
“Hey, take a look at this” Kenneth said shakenly, “it’s such a
crazy sight , who would have known a place full of life could
die like that.” Chao walked towards the window that Kenneth
was gazing at, to Chao surprise he thought the earth finally
looks at peace, most of the surfaces is covered by water and
only a few spots were land. The year 2130 is the current year
and today is the last day humans would be able to live on planet
Earth. Chao and Kenneth are on the last shuttle to Trident, a
planet that almost replicates Earth was found in the year 2100.
The speakers attached to the ceiling of our bunkers starts to
buzz, “hello everyone this is Gilfred speaking, and as your
captain I hoped everyone is enjoying their ride on the Exodus
500.

8. “500, isn’t there only 340 people each ship and this is the last
ship?” asked Kenneth
“yes, so about 170,000 people or even less in total population of
Trident.” Chao responded
“Why less?” Kenneth wondered, “I heard that the people who
were sick during the boarding process were not allowed to go on
board the Exodus and I have also heard that some people who
are not as healthy slowly got sick on Trident and died a few
weeks after embarking”.
“I see so that is why they mentioned after embarking we all
have to get tested if our genetic structure can withstand Trident
atmosphere if not we have to get our DNA modified to be able
to live but it isn’t a guaranteed it will work,'' said Kenneth as he
places his chin between his index finger and thumb.
Characters: John, Chao, Samantha, Kenneth