Question
Given the most recent financial statements for Microsoft (FY2019). Sales for FY2020 are expected to grow by 4 percent. The following assumption must hold in
Given the most recent financial statements for Microsoft (FY2019). Sales for FY2020 are expected to grow by 4 percent. The following assumption must hold in the pro forma financial statements. The tax rate (percentage) and the dividend payout ratio (percentage) will remain constant. COGS, SGA, Depreciation, Interest Expense, Cash, Account Receivable, Inventory, Other Current Assets, and Net Fixed Asset increase spontaneously with sales. If the firm is operating at full capacity and no new debt or equity are issued, calculate the external financing needed for the firm. (Round to 2 decimals)
| Simplified Statements for MSFT |
|
| Balance Sheet | FY2019 |
| Income Statement | FY2019 |
| Cash | 147,145 |
| Sales | 115,450 |
| Acct. Receivable | 29,129 |
| COGS | 42,500 |
| Inventory | 2,928 |
| SGA | 38,000 |
| Other Current Assets | 7,409 |
| Depreciation | 15,000 |
| Net Fixed Assets | 103,910 |
| EBIT | 19,950 |
| Total Assets | 290,521 |
| Interest Expense | 3,550 |
|
|
|
| EBT | 16,400 |
| Acct. Payable | 9,479 |
| Taxes | 3444 |
| Long Term Debt | 184,246 |
| Net Income | 12,956 |
| Common Stock | 78,345 |
| Dividends | 6,000 |
| Retained Earnings | 18,451 |
| Addition to Retained Earnings | 6,956 |
| Total Liab. And Equity | 290,521 |
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