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Finish the Problem Please: Download spreadsheet Ch 0 9 P 1 0 Build a Model - 3 3 6 a 8 5 . xlsx a
Finish the Problem Please: Download spreadsheet Ch P Build a Modelaxlsx
a What are the forecasted levels of the line of credit and special dividends? Hints: Create a column showing the ratios for the current year; then create a new column showing the ratios
used in the forecast. Also, create a preliminary forecast that doesn't include any new line of credit or special dividends. Identify the financing deficit or surplus in this preliminary forecast
and then add a new column that shows the final forecast that includes any new line of credit or special dividend.
Required line of credit
$
thousand
Special dividends
$
thousand
b Now assume that the growth in sales is only What are the forecasted levels of the line of credit and special dividends?
Required line of credit
$
thousand
Special dividends
$
thousand
Important Numbers provided from excel:
Sales growth rate Dividend growth rate Interest rate on longterm debt Interest rate on line of credit Tax rate a Determining the forecasted levels of the line of credit and special dividends Zeiber's Projected Financial Statements Thousands of Dollars Balance Sheets Assets: Cash $ Accounts receivable Inventories Total current assets $ Fixed assets Total assets $ Liabilities and equity Accounts payable $ Accruals Line of credit Total current liabilities $ Longterm debt Total liabilities $ Common stock Retained earnings Total common equity $ Total liabilities and equity $ Income Statements Sales $ Expenses excluding depr. & amort. Depreciation and amortization EBIT $ Interest expense on longterm debt Interest expense on line of credit EBT $ Taxes Net income $ Regular common dividends $ Special dividends Addition to retained earnings $
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