Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

(Financial forecasting) Zapatera Enterprises is evaluating its financing requirements for the coming year. The firm has only been in business for one year, but its

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
(Financial forecasting) Zapatera Enterprises is evaluating its financing requirements for the coming year. The firm has only been in business for one year, but its CFO predicts that the firm's operating expenses, current assets, net fixed assets, and current liabilities will remain at their current proportion of sales. Last year Zapatera had $12.96 million in sales with net income of $1.21 million. The firm anticipates that next years sales will reach $14.35 million with net income rising to $2.02 million. Given its present high rate of growth, the firm retains all of its eamings to help defray the cost of new investments. The firm's balance sheet for the year just ended is as folows: EER Estimate Zapatera's total financing requirements (total assets) and its net funding requirements (discretionary financing neede) for 2014. Note: Use the percentage of sales given in Zapatera Enterprises' balance sheet for 2013 Hint Make sure to round all intermediate calculations to at least five decimal places. The 2014 retained earnings are $ 3,420,000. (Round to the nearest dollar.) Complete the pro forma balance sheet for 2014 below: (Round to the nearest dollar)

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

Options Futures And Other Derivatives

Authors: John Hull

11th Global Edition

1292410655, 9781292410654

More Books

Students also viewed these Finance questions

Question

A service window closes just as they get to the front of the line.

Answered: 1 week ago