(c) Problem one: A financial manager at General Talc Mines has gathered the financial data essential to prepare a pro forma balance sheet for cash and profit planning purposes for the coming year ended December 31, 2021. Using the percent-of-sales method and the following financial data, prepare the pro forma balance sheet in order to answer the following multiple choice questions. The firm estimates sales of $1,000,000. (b) The firm maintains a cash balance of $25,000. Accounts receivable represents 15 percent of sales. (d) Inventory represents 35 percent of sales. A new piece of mining equipment costing $150,000 will be purchased in 2021. Total depreciation for 2021 will be $75,000. (1) Accounts payable represents 10 percent of sales. There will be no change in notes payable, accruals, and common stock. (h) The firm plans to retire a long term note of $100,000. (i) Dividends of $45,000 will be paid in 2021. Gi) The firm prediets a 4 percent net profit margin. Balance Sheet ccounts receivable ventories otal current assets t fixed assets -tal assets $ 25,000 120,000 300,000 $ 445,000 $ 500,000 $ 945,000 $ 80,000 350,000 50,000 $ 480,000 150,000 $630,000 Liabilities and stockholders' uity accounts payable Stes payable ecruals otal current liabilities -ng-term debts otal liabilities ockholders' equity Common stock cetained earnings Total Stockholders' equity Total liabilities and stockholders' equity General Tale Mines December 31, 2020 180,000 135.000 315.000 945,000 Use the previous table and data to solve Qs(1 - 7) 1. The pro forma total current assets amount is A) $470,900 B) $500,000 C) $525,000 D) $575,000 2. The pro forma net fixed assets amount is A) $500,000 B) $575,000 $600,000 D) $650,000 C) 3. The pro forma current liabilities amount is A) $400,000 B) S450,000 $475,000 D) $500,000 4. The pro forma total liabilities amount is A) $500,000 B) S550,000 C) 8700,000 D) $650,000 s. The pro forma accumulated retained earnings amount is A) 890,000 B) S175,000 C) $140,000 D) $130,000 6. The external financing required in 2010 will be A) $230,000 B) $240,000 C) SO D) - $195,000 7. General Tale Mines may prepare to A) arrange for a loan equal to the external funds requirement 240,000 = external finance B) eliminate the dividend to cover the needed financing C) cancel the retirement of the long term note to cover the needed financing D) repurchase common stock equal to the external funds requirement Problem Two: Suppose a company has two investment opportunities: project X and Project Y. The initial investments, the cash inflows, and the internal rate of return (IRR) for each of these two projects are as follows: Initial Inv -90,000 -100,000 40,000 10,000 30,000 40,000 3 50.000 40.000 14 25,000 40,000 IRR 23.1% 21.9% X 10%/Y 10% Company's cost of capital is 10%, and the company management determined the maximum acceptable payback period to be 3 years. (Use the previous information to calculate the question from No. 8 - 12) 8. The payback period for project X? A) 3 years b) 2.4 years C) 5years D) None of the answers is true 9. The payback period for project Y? 133.5 years b) 2.4 years D)5 years C) 2.5 years 10. The NPV for project X is while NPV for Project Y is A)$26796, )$25008 B)S26700, $26796 C)$25008, $25798 D)$25798 , $26796 11. Based on the IRR criterion, which project(s) should be accepted? A)Project X B)Project Y C)Both of them D)None of them