Dalia Colby, CFO of Charming Florist Ltd., has created the firms pro forma balance sheet for the next fiscal year. Sales are projected to grow by 10 percent to $360 million. Current assets, fixed assets, and short-term debt are 20 percent, 75 percent, and 15 percent of sales, respectively. Charming Florist pays out 30 percent of its net income in dividends. The company currently has $105 million of long-term debt and $46 million in common stock par value. The profit margin is 9 percent.

Part a: Construct the current balance sheet for the firm using the projected sales figure.

Part b: Based on Ms. Colbys sales growth forecast, how much does Charming Florist need in external funds for the upcoming fiscal year?

Part c: Construct the firms pro-forma balance sheet for the next fiscal year and confirm the external funds needed that you calculated in part b.