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 $10\%$ to $$440$ million. Current assets, fixed

assets, and short$-$term debt are $20\%,140\%$ and $15\%,$ respectively. Charming Florist pays out

$40\%$ of its net income in dividends. The company currently has $$145$ million of long$-$term debt

and $$50$ million in common stock par value. The profit margin is $12\%.$

a$.$ Construct the current balance sheet for the firm using the projected sales figure.

b$.$ Based on Ms$.$ Colby$$s sales growth forecast, how much does Charming Florist need in

external funds for the upcoming year?

Balance Sheet

Assets This year

$($$ mill$)$

Next year

$($$ mill$)$

Liabilities This year $($$ mill$)$ Next year

$($$ mill$)$

Fixed Assets LT Debt

Current Assets ST Debt

Equity

Retained Earnings

TOTAL ASSETS LIAB$+$EQUITY$+$R$.$E$.$