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) 197.37 - 184.86 12.51 - 1.27 11.24 -2.1 Balance Sheet($ million) Assets Cash Accounts Receivable Inventories Total Current Assets Property, Plant, and Equipment 24.06 18.44 16.01 58.51 119.99 LOSIS cxcepi Depreciation EBITDA Depreciation and Amortization EBIT Interest Expense (net) Pre-tax Income Income Tax Net Income - 104.00 12.51 - 1.27 11.24 -2.1 9.14 -2.29 6.85 Las Accounts Receivable Inventories Total Current Assets Property, Plant, and Equipment Total Assets 24.00 18.44 16.01 58.51 119.99 178.5 Liabilities and Equity Accounts Payable Long-Term Debt Total Liabilities Stockholders' Equity Total Liabilities and Equity 36.78 116.69 153.47 25.03 178.50 i - X Data Table Current Income Statement ($ million) Net Sales Costs Except Depreciation EBITDA Depreciation and Amortization EBIT Interest Income (expense) 186.2 - 174.4 11.8 - 1.2 10.6 -2.1 Current Balance Sheet ($ million) Assets Cash Accounts Receivable Inventories Total Current Assets Net Property, Plant, and Equipment Total Assets 22.7 17.4 15.1 55.2 113.2 168.4 Pre-tax Income Taxes Net Income 8.5 -2.1 6.4 Liabilities and Equity Accounts Payable Long-Term Debt Total Liabilities Total Stockholders' Equity Total Liabilities and Equity 34.7 112.1 146.8 21.6 168.4 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) 197.37 - 184.86 12.51 - 1.27 11.24 -2.1 Balance Sheet($ million) Assets Cash Accounts Receivable Inventories Total Current Assets Property, Plant, and Equipment 24.06 18.44 16.01 58.51 119.99 LOSIS cxcepi Depreciation EBITDA Depreciation and Amortization EBIT Interest Expense (net) Pre-tax Income Income Tax Net Income - 104.00 12.51 - 1.27 11.24 -2.1 9.14 -2.29 6.85 Las Accounts Receivable Inventories Total Current Assets Property, Plant, and Equipment Total Assets 24.00 18.44 16.01 58.51 119.99 178.5 Liabilities and Equity Accounts Payable Long-Term Debt Total Liabilities Stockholders' Equity Total Liabilities and Equity 36.78 116.69 153.47 25.03 178.50 i - X Data Table Current Income Statement ($ million) Net Sales Costs Except Depreciation EBITDA Depreciation and Amortization EBIT Interest Income (expense) 186.2 - 174.4 11.8 - 1.2 10.6 -2.1 Current Balance Sheet ($ million) Assets Cash Accounts Receivable Inventories Total Current Assets Net Property, Plant, and Equipment Total Assets 22.7 17.4 15.1 55.2 113.2 168.4 Pre-tax Income Taxes Net Income 8.5 -2.1 6.4 Liabilities and Equity Accounts Payable Long-Term Debt Total Liabilities Total Stockholders' Equity Total Liabilities and Equity 34.7 112.1 146.8 21.6 168.4
