Cholesterol Dairy Products has plants in five provinces and operates a very large home delivery service Sales last year were $100 milion, and the balance sheet at year-end is similar in percent of sales to that of previous years (and this will continue in the future). All assets and current liabilities will vary directly with sales. Assume the firm is already using capital assets at full capacity. Balance sheet Tin 5 millione Liabilities and shareholders Equity Cash $8 Accounts payable 56 Aceasta receivable 12 Acued viages Inventory 21 Acerund ta Current at 541 Current liabilities Capital annet 41 Long-ter debt Common steek Betained earning SE2 Total liabilities and whareholder's SE2 Total wat equity **] * * * 21 The firm has an aftertax profit margin of 3 percent and a dividend payout ratio of 20 percent. a. If sales grow by 10 percent next year, determine how many dollars of new funds are needed to finance the expansion. (Enter the answer in millions. Round the final answer to 3 decimal places.) The firm needs $ million in external funds. b. Prepare a pra forma balance sheet with any financing adjustment made to long term debt. (Input all answers as positive values. Be sure to list the assets and liabilities in order of their liquidity. Enter the answers in millions. Round the final answers to 3 decimal places.) Current sets Balance Sheet (5 million) Liabilities and Shareholders' Equity Current liabilities (Click to V Click to see! V Click to select) Click to select) V 5 Click to select) >> Cick to soc Current annet Current liabilities Click to select) (Click to select Click to select COTTO 5 Total satu Total liabilities and shareholders' equity c. Calculate the current ratio and total debt to assets ratio for each year. (Round the final answers to 2 decimal places.) Year 2 Current ratio Total debt / Cholesterol Dairy Products has plants in five provinces and operates a very large home delivery service Sales last year were $100 milion, and the balance sheet at year-end is similar in percent of sales to that of previous years (and this will continue in the future). All assets and current liabilities will vary directly with sales. Assume the firm is already using capital assets at full capacity. Balance sheet Tin 5 millione Liabilities and shareholders Equity Cash $8 Accounts payable 56 Aceasta receivable 12 Acued viages Inventory 21 Acerund ta Current at 541 Current liabilities Capital annet 41 Long-ter debt Common steek Betained earning SE2 Total liabilities and whareholder's SE2 Total wat equity **] * * * 21 The firm has an aftertax profit margin of 3 percent and a dividend payout ratio of 20 percent. a. If sales grow by 10 percent next year, determine how many dollars of new funds are needed to finance the expansion. (Enter the answer in millions. Round the final answer to 3 decimal places.) The firm needs $ million in external funds. b. Prepare a pra forma balance sheet with any financing adjustment made to long term debt. (Input all answers as positive values. Be sure to list the assets and liabilities in order of their liquidity. Enter the answers in millions. Round the final answers to 3 decimal places.) Current sets Balance Sheet (5 million) Liabilities and Shareholders' Equity Current liabilities (Click to V Click to see! V Click to select) Click to select) V 5 Click to select) >> Cick to soc Current annet Current liabilities Click to select) (Click to select Click to select COTTO 5 Total satu Total liabilities and shareholders' equity c. Calculate the current ratio and total debt to assets ratio for each year. (Round the final answers to 2 decimal places.) Year 2 Current ratio Total debt /
