Esther’s Egg Farm is constructing its pro forma financial statements for this year. At year end,...
Esther’s Egg Farm is constructing its pro forma financial statements for this year. At year end, assets were $400,000 and accounts payable (the only current liabilities account) were $125,000. Last year’s sales were $500,000. Esther’s expects to grow by 15 percent this year. Assets and accounts payable are expected to grow proportionally to sales. Common stock currently equals $140,000, and retained earnings are $98,000. Esther’s plans to sell $15,000 of new common stock this year. The firm’s profit margin on sales is 6 percent, and 40 percent of earnings will be paid out as dividends. How much new long-term debt financing will Esther’s need this year to finance its expected growth? Esther’s is currently operating at full capacity.
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Esther’s Egg Farm is constructing its pro forma financial
statements for this year. At year end,...
Pro forma Income Statement 6-8. The balance sheet of Free Enterprises, Inc., at the end of...
Pro forma Income Statement 6-8. The balance sheet of Free Enterprises, Inc., at the end of 2018 follows. Assets Cash Accounts Receivable Inventory Prepaid Expenses Total Current Assets Fixed Assets Total Assets Free Enterprises, Inc. Balance Sheet, Dec. 31, 2018 (Thousands of Dollars) Liabilities + Equity $ 4,000 Accounts Payable $ 4,400 10.000 Notes Payable 4,000 13,000 Accrued Expenses 5,000 400 Total Current Liabilities 13,400 27,400 Bonds Payable 6,000 11,000 Common Equity 19,000 $ 38,400 Total Liabilities and Equity $...
Integrative-Pro forma statements Red Queen Restaurants wishes to prepare financial plans. Use the financial statements and...
Integrative-Pro forma statements Red Queen Restaurants wishes to prepare financial plans. Use the financial statements and the other information provided here to prepare the financial plans. The following financial data are also available: (1) The firm has estimated that its sales for 2020 will be $900,400. (2) The firm expects to pay $35,300 in cash dividends in 2020. (3) The firm wishes to maintain a minimum cash balance of $31,800. (4) Accounts receivable represent approximately 19% of annual sales. Data...
Integrative Pro forma statements Red Queen Restaurants wishes to prepare financial plans. Use the financial statements...
Integrative Pro forma statements Red Queen Restaurants wishes to prepare financial plans. Use the financial statements and the other information provided here囲to prepare the financial plans. The following financial data are also available (1) The firm has estimated that its sales for 2016 will be $900,300 (2) The firm expects to pay $35,900 in cash dividends in 2016 (3) The firm wishes to maintain a minimum cash balance of $30,500 (4) Accounts receivable represent approximately 24% of annual sales (5)...
Dahlia Colby, CFO of Charming Florist Ltd., has created the firm’s pro forma balance sheet for...
Dahlia Colby, CFO of Charming Florist Ltd., has created the firm’s pro forma balance sheet for the next fiscal year. Sales are projected to grow by 20 percent to $480 million. Current assets, fixed assets, and short-term debt are 20 percent, 70 percent, and 10 percent of sales, respectively. Charming Florist pays out 20 percent of its net income in dividends. The company currently has $125 million of long-term debt and $53 million in common stock par value. The profit...
Develop pro forma financial statements for 2020 on the form provided. Compute interest as if the...
Develop pro forma financial statements for 2020 on the form provided. Compute interest as if the Bank Loan and the LT Debt were reduced on January 1, 2020, so interest is based on your new year-end loan amounts for the entire year. (8 points) Will the Bank Loan increase or decrease by the end of 2020? What changes contribute to the change in the bank loan; that is, what were the primary uses and sources of cash that caused the...
Pro forma balance sheet. Next year, National Beverage Company will increase its plant, property, and equipment...
Pro forma balance sheet. Next year, National Beverage Company will increase its plant, property, and equipment by $4,038,000 with a plant expansion. The inventories will grow by 30%, accounts receivable will grow by 25%, and marketable securities will be reduced by 47% to help finance the expansion. Assume all other asset accounts will remain the same and the company will use long-term debt to finance the remaining expansion costs (no change in common stock or retained earnings). Using this information...
Pro forma balance sheet. Next year, National Beverage Company will increase its plant, property, and equipment...
Pro forma balance sheet. Next year, National Beverage Company will increase its plant, property, and equipment by $4,034,000 with a plant expansion. The inventories will grow by 34%, accounts receivable will grow by 15%, and marketable securities will be reduced by 53% to help finance the expansion. Assume all other asset accounts will remain the same and the company will use long-term debt to finance the remaining expansion costs (no change in common stock or retained earnings). Using this information...
Pro forma balance sheet. Next year, National Beverage Company will increase its plant, property, and equipment...
Pro forma balance sheet. Next year, National Beverage Company will increase its plant, property, and equipment by $4,058,000 with a plant expansion. The inventories will grow by 31%, accounts receivable will grow by 21%, and marketable securities will be reduced by 53% to help finance the expansion. Assume all other asset accounts will remain the same and the company will use long-term debt finance the remaining expansion costs (no change in common stock or retained earnings). Using this information and...
i need all the blanks in both pictures please. thank you! Integrative-Pro forma statements Red Queen...
i need all the blanks in both pictures please. thank
you!
Integrative-Pro forma statements Red Queen Restaurants wishes to prepare financial plans. Use the financial statements and the other information provided here to prepare the financial plans. The following financial data are also available: (1) The firm has estimated that its sales for 2020 will be $900,100 (2) The firm expects to pay $34,000 in cash dividends in 2020. (4) Accounts receivable represent approximately 24% of annual sales. (5) The...
Pro forma balance sheet-Basic Leonard Industries wishes to prepare a pro forma balance sheet for December 31, 2020. The...
Pro forma balance sheet-Basic Leonard Industries wishes to prepare a pro forma balance sheet for December 31, 2020. The firm expects 2020 sales to total $3,000,000. The following information has been gathered. (1) A minimum cash balance of $49,500 is desired. (2) Marketable securities are expected to remain unchanged. B) Accounts receivable represent 10.1% of sales. (4) Inventories represent 12.1% of sales. (5) A new machine costing $90,200 will be acquired during 2020. Total depreciation for the year will be...
Pro forma Income Statement 6-8. The balance sheet of Free Enterprises, Inc., at the end of 2018 follows. Assets Cash Accounts Receivable Inventory Prepaid Expenses Total Current Assets Fixed Assets Total Assets Free Enterprises, Inc. Balance Sheet, Dec. 31, 2018 (Thousands of Dollars) Liabilities + Equity $ 4,000 Accounts Payable $ 4,400 10.000 Notes Payable 4,000 13,000 Accrued Expenses 5,000 400 Total Current Liabilities 13,400 27,400 Bonds Payable 6,000 11,000 Common Equity 19,000 $ 38,400 Total Liabilities and Equity $...
Integrative-Pro forma statements Red Queen Restaurants wishes to prepare financial plans. Use the financial statements and the other information provided here to prepare the financial plans. The following financial data are also available: (1) The firm has estimated that its sales for 2020 will be $900,400. (2) The firm expects to pay $35,300 in cash dividends in 2020. (3) The firm wishes to maintain a minimum cash balance of $31,800. (4) Accounts receivable represent approximately 19% of annual sales. Data...
Integrative Pro forma statements Red Queen Restaurants wishes to prepare financial plans. Use the financial statements and the other information provided here囲to prepare the financial plans. The following financial data are also available (1) The firm has estimated that its sales for 2016 will be $900,300 (2) The firm expects to pay $35,900 in cash dividends in 2016 (3) The firm wishes to maintain a minimum cash balance of $30,500 (4) Accounts receivable represent approximately 24% of annual sales (5)...
Pro forma balance sheet. Next year, National Beverage Company will increase its plant, property, and equipment by $4,038,000 with a plant expansion. The inventories will grow by 30%, accounts receivable will grow by 25%, and marketable securities will be reduced by 47% to help finance the expansion. Assume all other asset accounts will remain the same and the company will use long-term debt to finance the remaining expansion costs (no change in common stock or retained earnings). Using this information...
Pro forma balance sheet. Next year, National Beverage Company will increase its plant, property, and equipment by $4,034,000 with a plant expansion. The inventories will grow by 34%, accounts receivable will grow by 15%, and marketable securities will be reduced by 53% to help finance the expansion. Assume all other asset accounts will remain the same and the company will use long-term debt to finance the remaining expansion costs (no change in common stock or retained earnings). Using this information...
Pro forma balance sheet. Next year, National Beverage Company will increase its plant, property, and equipment by $4,058,000 with a plant expansion. The inventories will grow by 31%, accounts receivable will grow by 21%, and marketable securities will be reduced by 53% to help finance the expansion. Assume all other asset accounts will remain the same and the company will use long-term debt finance the remaining expansion costs (no change in common stock or retained earnings). Using this information and...
i need all the blanks in both pictures please. thank
you!
Integrative-Pro forma statements Red Queen Restaurants wishes to prepare financial plans. Use the financial statements and the other information provided here to prepare the financial plans. The following financial data are also available: (1) The firm has estimated that its sales for 2020 will be $900,100 (2) The firm expects to pay $34,000 in cash dividends in 2020. (4) Accounts receivable represent approximately 24% of annual sales. (5) The...
Pro forma balance sheet-Basic Leonard Industries wishes to prepare a pro forma balance sheet for December 31, 2020. The firm expects 2020 sales to total $3,000,000. The following information has been gathered. (1) A minimum cash balance of $49,500 is desired. (2) Marketable securities are expected to remain unchanged. B) Accounts receivable represent 10.1% of sales. (4) Inventories represent 12.1% of sales. (5) A new machine costing $90,200 will be acquired during 2020. Total depreciation for the year will be...
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What is the NPV?
r=9.28
c1= 5.853
c2= 6.37 + 1,826.76
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