Answered step by step
Verified Expert Solution
Question
1 Approved Answer
3) The 1999 Balance Sheet for ABC Corporation is shown below: Assets Liabilities Cash $10,000 Accounts Receivable 20,000 Inventory 40,000 Total Current Assets $70,000 Net
3) The 1999 Balance Sheet for ABC Corporation is shown below: Assets Liabilities Cash $10,000 Accounts Receivable 20,000 Inventory 40,000 Total Current Assets $70,000 Net Fixed Assets $150,000 Accounts Payable Accruals Total Current Liabilities Bonds Total Liabilities $8,000 2,000 $10,000 $30,000 $40,000 Owners Equity Common Stock $100,000 Retained Earnings 80,000 Total Liabilities & Owners Equity $220,000 Total Assets $220,000 The firm is currently operating at 100% capacity with sales of $100,000. Management believes that next year sales will increase by 10% and is anticipating that the firm's profit margin will remain at 20%. The dividend payout for next year will be 45%. In the year 2,000 what will the firms additional funds needed be? (In answering this question you must prepare a pro forma balance sheet.)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started