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 to grow

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
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 10 percent to $550 million Current assets, fixed assets, and short-term debt are 15 percent, 80 percent, and 5 percent of sales, respectively. Charming Florist pays out 20 percent of its net income in dividends. The company currently has $139 million of long-term debt and $67 million in common stock par value. The profit margin is 10 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.) Assets Current assets Fixed assets Balance Sheet Liabilities and equity 110/Short-term debt 440 Long-term debt $ Common stock Accumulated retained earnings Total equilty Prev Check Assets Balance Sheet Liabilities and equity 110 Short-term debt 440 long-term dobt 55 Current assets Fixed assets 136 $ 60 Common stock Accumulated retained earnings 299 Total equity 550 Total liabilities and equity 359 550 Total assets $ $ b. Based on Ms. Colby's sales growth forecast how much does Charming Florist need in external funds for the upcoming fiscal year? (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to the nearest whole dollar amount, e.g., 1,234,567.) OK External financing needed ences C-1. Construct the firm's pro forma balance sheet for the next fiscal year. (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) Balance Sheet c-1. Construct the firm's pro forma balance sheet for the next fiscal year. (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) Balance Sheet Assets Liabilities and equity Total assets Total aquity Total liabilities and equity c-2. Calculate the external funds needed. (Do not round Intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to the nearest whole dollar amount, e.g., 1,234,567.) Extemal financing needed

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

The AMA Handbook Of Financial Risk Management

Authors: John J. Hampton

1st Edition

0814417442, 978-0814417447

More Books

Students also viewed these Finance questions

Question

Design a training session to maximize learning. page 296

Answered: 1 week ago

Question

Design a cross-cultural preparation program. page 300

Answered: 1 week ago