Global Corp. expects sales to grow by 6% next year. Assume that Global pays out 50% of its net income. Global developed the pro forma financial statements given below. What is the amount of net new financing needed for Global? If the new financing must all be in the form of long-term debt, what is the forecast amount of new long-term debt? Global's current statements are in the following data table Click on the following icon for the pro forma income statement in order to copy its contents into a spreadsheet. Click on the following icon for the pro forma balance sheet in order to copy its contents into a spreadsheet. . Pro Forma Financial Statements Income Statement ($ million) Sales Costs Except Depreciation EBITDA Depreciation and Amortization EBIT Interest Expense (net) Pre-tax Income Income Tax 196.42 184.97 11.45 - 1.27 10.18 - 1.9 8.28 -2.07 6.21 Balance Sheet ($ million) Assets Cash Accounts Receivable Inventories Total Current Assets Property, Plant, and Equipment Total Assets 24.49 19.5 16.85 60.84 120.21 181.05 Net Income Liabilities and Equity - 1.9 120.21 Property, Plant, and Equipment Total Assets 181.05 Interest Expense (net) Pre-tax Income Income Tax Net Income 8.28 - 2.07 6.21 Liabilities and Equity Accounts Payable Long-Term Debt Total Liabilities Stockholders' Equity Total Liabilities and Equity 37.63 118.91 156.54 24.51 181.05 Global Corp. expects sales to grow by 6% next year. Assume that Global pays out 50% of its net income. Global developed the pro forma financial statements given below. What is the amount of net new financing needed for Global? If the new financing must all be in the form of long-term debt, what is the forecast amount of new long-term debt? Global's current statements are in the following data table Click on the following icon for the pro forma income statement in order to copy its contents into a spreadsheet. Click on the following icon for the pro forma balance sheet in order to copy its contents into a spreadsheet. . Pro Forma Financial Statements Income Statement ($ million) Sales Costs Except Depreciation EBITDA Depreciation and Amortization EBIT Interest Expense (net) Pre-tax Income Income Tax 196.42 184.97 11.45 - 1.27 10.18 - 1.9 8.28 -2.07 6.21 Balance Sheet ($ million) Assets Cash Accounts Receivable Inventories Total Current Assets Property, Plant, and Equipment Total Assets 24.49 19.5 16.85 60.84 120.21 181.05 Net Income Liabilities and Equity - 1.9 120.21 Property, Plant, and Equipment Total Assets 181.05 Interest Expense (net) Pre-tax Income Income Tax Net Income 8.28 - 2.07 6.21 Liabilities and Equity Accounts Payable Long-Term Debt Total Liabilities Stockholders' Equity Total Liabilities and Equity 37.63 118.91 156.54 24.51 181.05
