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Can you help me out with this problem and if you can please share the procedure to get the financials. Strategies: 1. Expand into Australia
Can you help me out with this problem and if you can please share the procedure to get the financials.
Strategies: 1. Expand into Australia (buy 50 lots for new locations) 2. Open 10 new stores in Quebec (incorporate French writing on products \& signage) 3. Borrow money and/ or issue stock to pay for the above changes. 4. If profitable, begin to issue dividends to shareholders at 5% of earnings. \begin{tabular}{|c|c|c|} \hline Projected Balance Sheet & & \\ \hline \multicolumn{3}{|l|}{ Assets } \\ \hline \multicolumn{3}{|l|}{ Current assests: } \\ \hline Cash & $541 & Plug Figure \\ \hline Short-term investments & $125 & 5% increase \\ \hline Merchandise inventory & $8,600 & 3% increase due to new stores \\ \hline Total Current Assets & $9,266 & \\ \hline Property, less depreciation & $21,477 & $100M to buy Australia lots \\ \hline Long-Term investments & $271 & 5% increase \\ \hline Total Assets & $31,014 & \\ \hline \multicolumn{3}{|l|}{ Liabilities and shareholders' equity } \\ \hline \multicolumn{3}{|l|}{ Current liabilities: } \\ \hline Accounts Payable & $4,657 & 5% \\ \hline Employee Compensation & $670 & 3% increase due to new stores \\ \hline Total Current Liabilities & $5,327 & \\ \hline Long-term debt & $9,030 & $100M needed \\ \hline Other Liabilities & $3,407 & 5% \\ \hline Total Liabilities & $17,764 & \\ \hline \multicolumn{3}{|l|}{ Shareholders' Equity: } \\ \hline Additional Paid in Capital & $26 & Issue 100,000 shares at $100 for each \\ \hline Retained Earnings & $13,224 & \\ \hline Total Shareholders' Equity & $13,250 & \\ \hline Total Liabilities and Shareholders' Equity & $31,014 & \\ \hline * All values are in millions & & \\ \hline \end{tabular}Step by Step Solution
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