Suppose that the 2013 actual and 2014 projected financial statements for Cramner Corp.are initially as shown in the following tables.In these tables,sales are projected to rise 35 percent in the coming year,and the components of the income statement and balance sheet that are expected to increase at the same 35 percent rate as sales are indicated with an italics font.Assuming that Cramner Corp.wants to cover the AFN with 45 percent equity,25 percent long-term debt,and the remainder from notes payable,what amount of additional funds will they need to raise if debt carries an 8 percent interest rate?

A)$660,600 equity; $367,000 long-term debt; $440,400 notes payable
B)$660,600 equity; $440,400 notes payable; $367,000 long-term debt
C)$1,468,000 equity; $0 long-term debt; $0 notes payable
D)None of the answers is correct

Question

Suppose that the 2013 actual and 2014 projected financial statements for Cramner Corp.are initially as shown in the following tables.In these tables,sales are projected to rise 35 percent in the coming year,and the components of the income statement and balance sheet that are expected to increase at the same 35 percent rate as sales are indicated with an italics font.Assuming that Cramner Corp.wants to cover the AFN with 45 percent equity,25 percent long-term debt,and the remainder from notes payable,what amount of additional funds will they need to raise if debt carries an 8 percent interest rate?

A)$660,600 equity; $367,000 long-term debt; $440,400 notes payable 
B)$660,600 equity; $440,400 notes payable; $367,000 long-term debt 
C)$1,468,000 equity; $0 long-term debt; $0 notes payable 
D)None of the answers is correct

Quizplus · Accepted Answer

The Answer of Suppose that the 2013 actual and 2014 projected financial statements for Cramner Corp.are initially as shown in the following tables.In these tables,sales are projected to rise 35 percent in the coming year,and the components of the income statement and balance sheet that are expected to increase at the same 35 percent rate as sales are indicated with an italics font.Assuming that Cramner Corp.wants to cover the AFN with 45 percent equity,25 percent long-term debt,and the remainder from notes payable,what amount of additional funds will they need to raise if debt carries an 8 percent interest rate?

A)$660,600 equity; $367,000 long-term debt; $440,400 notes payable 
B)$660,600 equity; $440,400 notes payable; $367,000 long-term debt 
C)$1,468,000 equity; $0 long-term debt; $0 notes payable 
D)None of the answers is correct

Suppose That the 2013 Actual and 2014 Projected Financial Statements