Long-term financing needed At year-end 2011, total assets for Ambrose Inc. were

Question

Long-term financing needed At year-end 2011, total assets for Ambrose Inc. were $1.6 million and accounts payable were $395,000. Sales, which in 2011 were $2.3 million, are expected to increase by 30% in 2012. Total assets and accounts payable are proportional to sales, and that relationship will be maintained; that is, they will grow at the same rate as sales. Ambrose typically uses no current liabilities other than accounts payable. Common stock amounted to $410,000 in 2011, and retained earnings were $220,000. Ambrose plans to sell new common stock in the amount of $185,000. The firm's profit margin on sales is 7%; 50% of earnings will be retained. What was Ambrose's total debt in 2011? Round your answer to the nearest cent. $ How much new long-term debt financing will be needed in 2012? Round your answer to the nearest cent. (Hint: AFN - New stock = New long-term debt.)

Explanation / Answer

SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ------------------------ AMENDMENT NO. 4 TO FORM S-1 REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 ------------------------------ CAYENTA, INC. (Exact name of Registrant as specified in its charter) DELAWARE 7379 33-0884182 (State or other jurisdiction of (Primary Standard Industrial (I.R.S. Employer incorporation or organization) Classification Code Number) Identification Number) ------------------------------ 5910 PACIFIC CENTER BLVD. SAN DIEGO, CA 92121-6301 (858) 550-5500 (Address, including zip code, and telephone number, including area code, of Registrant's principal executive offices) ------------------------------ DAVID PORRECA PRESIDENT/CEO CAYENTA, INC. 5910 PACIFIC CENTER BLVD. SAN DIEGO, CA 92121-6301 (858) 550-5500 FAX:(858) 550-5361 (Name, address, including zip code, and telephone and facsimile numbers, including area code, of agent for service) COPIES TO: NICHOLAS J. COSTANZA BARBARA L. BORDEN, ESQ. LAURIE A. SMILEY, ESQ. GENERAL COUNSEL MATTHEW T. BROWNE, ESQ. CHRISTOPHER J. VOSS, ESQ. CAYENTA, INC. COOLEY GODWARD LLP MARC S. MARCHIEL, ESQ. 5910 PACIFIC CENTER BLVD. 4365 EXECUTIVE DRIVE, SUITE 1100 STOEL RIVES LLP SAN DIEGO, CA 92121-6301 SAN DIEGO, CA 92121 600 UNIVERSITY STREET, 36TH FLOOR (858) 552-9500 (858) 550-6000 SEATTLE, WA 98101-3197 FAX: (858) 552-9759 FAX: (858) 453-3555 (206) 624-0900 FAX: (206) 386-7500

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