Question
Given the financial statements below for Dragonfly Enterprises, what is the external financing need for a pro forma increase in sales of 20% if the
Given the financial statements below for Dragonfly Enterprises, what is the external financing need for a pro forma increase in sales of 20% if the company is operating at 90% capacity? Enter your answer as the nearest whole (e.g., 123), but do not include the $ sign.
Dragonfly Enterprises |
|
|
Income Statement ($ Million) |
| 2011 |
|
|
|
Sales |
| 370 |
Cost of Goods Sold |
| 226 |
Selling, Gen & Admin Exp |
| 62 |
Depreciation |
| 20 |
Earnings Before Int & Tax |
| 62 |
Interest Expense |
| 12 |
Taxable Income |
| 50 |
Taxes at 40% |
| 20 |
Net Income |
| 30 |
Dividends |
| 9 |
Addition to Retained Earn. |
| 21 |
|
|
|
Balance Sheets as of 12-31 |
|
|
Assets | 2010 | 2011 |
Cash | 10 | 10 |
Account Receivable | 46 | 50 |
Inventory | 43 | 45 |
Total Current Assets | 99 | 105 |
Net Fixed Assets | 166 | 195 |
Total Assets | 265 | 300 |
|
|
|
Liabilities and Owners Equity | 2010 | 2011 |
Accounts Payable | 26 | 30 |
Notes Payable | 0 | 0 |
Total Current Liabilities | 26 | 30 |
Long-Term Debt | 140 | 150 |
Common Stock | 22 | 22 |
Retained Earnings | 77 | 98 |
Total Liab. and Owners Eq | 265 | 300 |
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