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

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 $462 million. Current assets, fixed assets, and short-term debt are 15 percent, 70 percent, and 5 percent of sales, respectively. Charming Florist pays out 25 percent of its net income in dividends. The company currently hes $138 million of long-term debt and $66 million in common stock par value. The profit margin is 9 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 Balance Sheet Liabilities and equity 63.000.000 Short-term debt 294,000,000 Long-term debt S S Current assets Fixed assets 21,000,000 138,000,000 S Caminan stock Accumulated retained earnings 68,000,000 132,000,000 S 198,000,000 Total equity 357,000,000 Total liabilities and equity Total assets S S 357,000,000 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.) External financing needed 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.... 1,234,567.) Assets Balance Sheet Liabilities and equity 69,300,000 Short-term debt 323,400,000 Long-term debt Current assets $ S 23,100,000 136.000.000 Fixed assets Common stock 66,000,000 Accumulated retained earnings Total equity 392,700,000 Tatal abilities and equity Total assets s 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.) External 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

Profile And Order Flow Analysis Next Level Of Crypto Trading

Authors: Johannes Forthmann

1st Edition

979-8849420721

More Books

Students also viewed these Finance questions