Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Dahlia Colby, CFO of Charming Florist Ltd . , has created the firm's pro forma balance sheet for the next fiscal year. Sales are projected

Dahlia 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 20 percent to $450 million. Current assets, fixed assets, and short-term debt are 15 percent, 70 percent, and 5 percent of sales, respectively. Charming Florist pays out 20 percent of its net income in dividends. The company currently has $133 million of long-term debt and $61 million in common stock par value. The profit margin is 16 percent.
a. Construct the current balance sheet for the firm using the projected sales figure. (Do not round intermediate calculations and enter your answers in dollars, not millions of dollars, rounded to the nearest whole dollar amount, e.g.,1,234,567.)
\table[[Assets,,Balance Sheet,],[Liabilities and equity,,,],[Current assets,,Long-term debt,],[Fixed assets,,Short-term debt,],[,,Accumulated retained earnings,],[,,Common stock,],[,,,],[Total assets,,Total equity,],[,,,]]
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Finance questions