Financial forecasting-percent of sales) Next year's sales for Cumberland Mfg. are expected to be $16.25 million. Current sales are $13 millon, based on current assets of 54.33 milion and fixed assets of $650 milion The firm's net profit margin is 4 percent after taxes. Cumberland estimates that its current assets will rise in direct proportion to the increase in sales, but that its fixed assets will increase by only $200,000. Currently, Cumberland has $1.50 million in accounts payable (which vary directly with sales). $2 million in long-term debt (due in 10 years), and common equity (including $2 million in retained eamings) totaling $7,33 milion $6 Cumberland plans to pay $0.16 million in common stock dividends next year. a. What are Cumberland's total financing needs (that is, total assets) for the coming year? inc b. Given the firm's projections and dividend payment plans, what are its discretionary tinanong needs? irla C. Based on your projections, and assuming that the $200,000 expansion in fixed assets wil occut, what is the largest increase in sales the firm can support without having to resort to the use of discretionary sources of ong financing? 1) to What are Cumberland's total financing needs (tahtis, total assets) for the coming year ids million (Round to two decimal places.) ming jonar ..Given the firm's projections and dividend payment plans, what are la discretionary financing needs? Smilton (Round to two decimal places) ed ass to res e. Based on your projections, and assuming that the $200,000 expansion in fredet wil occur, what is the largest increase in sales the firm can support without having to resort to the use of discretionary sources of francing? ming ye million (Round to two decimal places) (Financial forecasting--discretionary financing needs) Sambonoza Enterprises projects its sales next year to be $7 million and expects to eam 6 percent of that amount after taxes. The firm is currently in the process of projecting its financing needs and has made the following assumptions (projections): 1. Current assets will equal 22 percent of sales and food assets will remain at the current level of $1 million 2. Common equity is currently 50.90 milion, and the firm pays out half of its after-tax amnings in dividends ing 3. The firm has short-term payables and trade credit that normally equal 12 percent of sales, and it has no long-term debt oftanding ila What are Sambonoza's financing requirements (le, total assets) and discretionary financing needs (OFM) for the coming year? ong for What are Sambonoza's financing requirements or total assets for the coming year? ids million (Round to two decimal places) ming What are Sabonoza's discretionary financing needs (OFM) for the coming your lonary milion (Round to two decimal places) ed asse to reso ming you