Question
24. The balance sheet of the Alex Dairy Products Company is presented below: Alex Dairy Products Company Balance Sheet December 31, 2021 (Millions of Dollars)
24. The balance sheet of the Alex Dairy Products Company is presented below: Alex Dairy Products Company Balance Sheet December 31, 2021 (Millions of Dollars) Current assets $12 Accounts payable $6 Fixed assets 18 Long-term debt 12 Total $30 Common equity 12 Total $30 For the year ending Dec. 31, 2021, Alex Dairy Products had sales of $35 million. The common stockholders received all net earnings of the firm in the form of cash dividends, leaving no funds from earnings available to the firm for expansion (assume that depreciation expense is just equal to the cost of replacing worn-out assets). Construct a pro forma balance sheet for Dec. 31, 2022, for an expected level of sales of $45 million. Assume fixed assets remain at the present level. Use notes payable as a source of external required financing.
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