The CFO for Zippy Company has prepared a forecast for its next fiscal year. What is...
The CFO for Zippy Company has prepared a forecast for its next fiscal year. What is its discretionary need for funds?
| Income Statement | |
| Sales | $1,800,000 |
| Net Income | 300,000 |
| Balance Sheet | |
| Cash | $480,000 |
| Accounts Receivable | 540,000 |
| Inventory | 420,000 |
| Property, Plant, Equip | 780,000 |
| Total Assets | $2,220,000 |
| Accounts Payable | 240,000 |
| Short-Term Notes Pay. | 250,000 |
| Long Term Debt | 550,000 |
| Common Stock | 200,000 |
| Retained Earnings | 830,000 |
| Total Financing Provided | |
| Discretionary Funding Needed (Plug) | |
| Total Financing Needed = Total Assets |
Homework Answers
Discreationary fund needed 1,50,000 to Squareup/Match up given Balance sheet.
where Total Asset is 22,20,000 & Liability is 20,70,000
So dicreationary fund = 22,20,000-20,70,000= 1,50,000
i.e. Total Financing Needed is 1,50,000
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