corporate valuation and financial planning - please help!!
Green Caterpillar Garden Supplies Inc. Balance Sheet For the Year Ended on December 31 The firm is currentiy in the process of forecasting sales, asset requirements, and required funding for the comling year, fn the year that fust ended, Green Catenpiliar Garden supolios inc, generated $350,000 net income on sales of $12,500,000. The firm expocts sales to increase by 159\$ this comind year and alse expects to maintain its long-run dividend payout ratio of 4006. Suppose Green Cateroiliar Garden Supplies inc's assets are fully utilized. Use the additional funds needed (AFN) equation to determine the increase in total assets that is necessary to support Green Caterpiliar Garden supplies Incts expected sales. 5540,000 $382,500 $517,500 1450,000 The firm is currently in the process of forecasting sales, asset requirements, and required funding for the coming year. In the year that just ended, Green Caterpillar Garden Supplles Inc. penerated $350,000 net income on sales of $12,500,000. The firm expects sales to increase by 15% this coming year and also expects to maintain its long-run dividend payout ratio of 40%. Suppose Green Caterpillar Garden Supplies Inci's assets are fully utilized. Use the additional funds needed (AFN) equation to determine the increase in total assets that is necessary to support Green Caterpillar. Garden Supplies Inci's expected sales. $540,000$382,500$517,500$5450,000 When a firm grows, some liabilities grow spontaneously along with sales. Spontaneous llabilitles are a source of capital that the firm will generate internally, so they reduce the need for external capitat. How much of the total increase in assets will be supplied by spontaneous liabilities for Green Caterpiliar Garden Supplies Inc, this year? 551,000 569,000 572,000 $60,000 In addition, Green Coterpillar Garden suppses inc, is expected to denerate net income this yoar, The firm will nay out some of its earnings as dividends but will retain the rest for future asset investment. Again, the more a firm generates internally from its operations, the less it will have to raise extemally from the cacital markets. Assume that the firm's profic maigin and divisend payout fatio are expected to remain constant. Given the preceding intormation, Green Caterpallar Garden Suppens inc. Is expected to oeneratit from operations that will be added to tetained earnings
