Orion Corporation Balance Sheet Year Cash $400 Accounts Payable $ 150 Accounts Receivable 250 Accrue

Orion Corporation Balance Sheet
Year
Cash
$400 Accounts Payable
$ 150
Accounts
Receivable
250 Accrued Wages

1,000
Inventory
1,200 Notes Payable
500
Net fixed
Assets
6,000 Common
Stock
3,200
Retained
Earnings
3,000
Totals
Assets
$7,850 Total Liabilities
$ Equity $ 7,850
Orion Corporation has just developed
a new type of microchip. Orion expects sales will quadruple, from $5,000
in year0 to $20,000 in year1 (next year). This is expected to result in a net
income of $4,000 in Year 1. Orion pays 80% of their net income in
dividends. Orion has a plenty of excess capacity and believe that they will not
need any additional fixed assets to achieve the increase in sales for
year1. Will Orion need any additional funding for year1? Will Orion Need
any additional funding for YEAR1? If so how much? If not how much excess
do they have? Show all work.

 

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