Question
Given the financial statements below for Firefly Enterprises, what is the external financing need for a pro forma increase in sales of 9%? Enter your
Given the financial statements below for Firefly Enterprises, what is the external financing need for a pro forma increase in sales of 9%? Enter your answer as the nearest whole (e.g., 123), but do not include the $ sign.
Firefly Enterprises |
|
|
Income Statement ($ Million) |
| 2011 |
|
|
|
Sales |
| 740 |
Cost of Goods Sold |
| 452 |
Selling, General, & Admin Exp. |
| 124 |
Depreciation |
| 40 |
Earnings Before Interest & Taxes |
| 124 |
Interest Expense |
| 24 |
Taxable Income |
| 100 |
Taxes at 40% |
| 40 |
Net Income |
| 60 |
Dividends |
| 18 |
Addition to Retained Earnings |
| 42 |
|
|
|
Balance Sheets as of 12-31 |
|
|
Assets | 2010 | 2011 |
Cash | 20 | 20 |
Account Receivable | 102 | 110 |
Inventory | 76 | 80 |
Total Current Assets | 198 | 210 |
Net Fixed Assets | 352 | 410 |
Total Assets | 550 | 620 |
|
|
|
Liabilities and Owners Equity | 2010 | 2011 |
Accounts Payable | 62 | 70 |
Notes Payable | 0 | 0 |
Total Current Liabilities | 62 | 70 |
Long-Term Debt | 280 | 300 |
Common Stock | 34 | 34 |
Retained Earnings | 174 | 216 |
Total Liab. and Owners Equity | 550 | 620 |
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