External Funds Needed: Cheryl Colby, CFO of charming Florist Ltd., has created the firm's pro forma...
External Funds Needed: Cheryl 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 15 percent to $211.6 million. Current assets, fixed assets, and short-term debt are 20 percent, 90 percent, and 15 percent of sales respectively. The company pays out 40 percent of its net income in dividends. The company currently has $32 million of long term-debt, and $16 million in common stock par value. The profit margin is 10 percent. (Hint: make sure you keep straight the information from the current year and that of the next year.)
a. Construct the current balance sheet for the firm using the projected sales figure.
b. Based on the sales growth forecast, how much does the company need in external funds for the upcoming fiscal year?
c. Construct the firm's pro forma balance sheet for the next fiscal year and confirm the external funds needed that you calculated in part b.
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External Funds Needed: Cheryl Colby, CFO of charming Florist
Ltd., has created the firm's pro forma...
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...
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 10 percent to $440 million. Current assets, fixed assets, and short-term debt are 20 percent, 80 percent, and 10 percent of sales, respectively. Charming Florist pays out 30 percent of its net income in dividends. The company currently has $122 million of long-term debt and $50 million in common stock par value. The profit...
please show all work sales are projected to be $14,399. What is Ul 9. External Funds...
please show all work
sales are projected to be $14,399. What is Ul 9. External Funds Needed Cheryl Colby, CFO of Charming Florist Ltd., has c reated the firm's pro forma balance sheet for the next fiscal year. Sales are projected to grow by 15 percent to $211.6 milli Current assets, fixed assets, and short-term debt are 20 percent, 90 percent, and 15 percent of sales respectively. The company pays out 40 percent of its net income in dividends. The...
Corporate Finance
Diana Dune, CFO of Rose Florist Ltd., has created the company's pro forma balance sheet for the next fiscal year. Sales are projected to grow 15 percent to $ 620 million. Current assets, fixed assets, and short-term debt are 25 percent, 80 percent, and 20 percent of sales, respectively. Rose florist shop pays 30 percent of its net profit in dividends. The company currently has $ 140 million in long-term debt and $ 68 million in par value for common...
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13. External Funds Needed The Optical Scam Company has forecast a sales growth rate of 15 percent for next year. The cu...
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Determining of external funds needed. n of External Funds Needed. Ina Corporation is thinking of purchasing...
Determining of external funds needed.
n of External Funds Needed. Ina Corporation is thinking of purchasing a new his new machine, the company expects sales to increase from $8,000,000 to 3.3 Determinatio $10,000,000n thi new machine, the company expects sales to increase from $8,000,000 to any knows that its assets, accounts payable, and accrued expenses vary directly with mpany's profit margin on sales is 8 percent, and the company plans to pay 40 percent machine. With sales. T of its...
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Uberville Drivers Inc. reported $750,000 in sales in the recent year, $650,000 in costs and $10,000...
Uberville Drivers Inc. reported $750,000 in sales in the recent year, $650,000 in costs and $10,000 in interest. The frm's tax rate is 34%, and recent year's dividend payment was $34,400. The company is planning to grow by 20% in the next year. Costs are proportional to sales. Interest is not. The company will face the same tax rate, and is targeting the same dividend payout ratio Construct a pro-forma income statement. What is the pro-forma addition to retained earnings?...
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 10 percent to $440 million. Current assets, fixed assets, and short-term debt are 20 percent, 80 percent, and 10 percent of sales, respectively. Charming Florist pays out 30 percent of its net income in dividends. The company currently has $122 million of long-term debt and $50 million in common stock par value. The profit...
please show all work
sales are projected to be $14,399. What is Ul 9. External Funds Needed Cheryl Colby, CFO of Charming Florist Ltd., has c reated the firm's pro forma balance sheet for the next fiscal year. Sales are projected to grow by 15 percent to $211.6 milli Current assets, fixed assets, and short-term debt are 20 percent, 90 percent, and 15 percent of sales respectively. The company pays out 40 percent of its net income in dividends. The...
13. External Funds Needed The Optical Scam Company has forecast a sales growth rate of 15 percent for next year. The current financial statements are shown here: Income Statement Sales $25,380,000 Costs 21,635,000 $3,745,000 Taxable income Taxes 1,498,000 Net income $2247,000 Dividends $786,450 Addition to retained earnings 1,460,550 Balance Sheet Liabilities and Owners' Equity Assets $ 5,200,000 Current assets $7,200,000 Short-term debt 6,000,000 Long-term debt Fixed assets 17.600,000 $3,200,000 Common stock 10,400,000 Accumulated retained earnings Total equity $13,600,000 Total assets...
13. External Funds Needed The Optical Scam Company has forecast a sales growth rate of 15 percent for next year. The current financial statements are shown here: Income Statement Sales $25,380,000 Costs 21,635,000 $ 3,745,000 Taxable income 1,498,000 Taxes $ 2,247,000 Net income $ 786,450 Dividends Addition to retained earnings 1,460,550 Balance Sheet Liabilities and Owners' Equity Assets $ 5,200,000 Current assets $7,200,000 Short-term debt 6,000,000 Long-term debt Fixed assets 17,600,000 $ 3,200,000 Common stock 10,400,000 Accumulated retained earnings Total...
Determining of external funds needed.
n of External Funds Needed. Ina Corporation is thinking of purchasing a new his new machine, the company expects sales to increase from $8,000,000 to 3.3 Determinatio $10,000,000n thi new machine, the company expects sales to increase from $8,000,000 to any knows that its assets, accounts payable, and accrued expenses vary directly with mpany's profit margin on sales is 8 percent, and the company plans to pay 40 percent machine. With sales. T of its...
External Funds Needed The Optical Scan Company has forecast a 20 percent sales growth rate for next year. The current financial statements are shown here: 3.8 Statement of Comprehensive Income Sales Costs Taxable income Taxes Net income $30,400,000 26,720,000 $ 3,680,000 1,288,000 $ 2,392,000 Dividends Addition to retained earnings $ 956,800 1,435,200 Statement of Financial Position Assets Liabilities and shareholder's equity Current assets 7,200,000 Short-term debt Fixed assets 17,600,000 Long-term debt Common stock $6,400,000 4,800,000 $3,200,000 10,400,000 $13,600,000 $24.800,000 Accumulated...
Uberville Drivers Inc. reported $750,000 in sales in the recent year, $650,000 in costs and $10,000 in interest. The frm's tax rate is 34%, and recent year's dividend payment was $34,400. The company is planning to grow by 20% in the next year. Costs are proportional to sales. Interest is not. The company will face the same tax rate, and is targeting the same dividend payout ratio Construct a pro-forma income statement. What is the pro-forma addition to retained earnings?...
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