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Having an issue completing this problem. Please let me know how to correct the mistakes. The Optical Scam Company has forecast a sales growth rate
Having an issue completing this problem. Please let me know how to correct the mistakes.
The Optical Scam Company has forecast a sales growth rate of 20 percent for next year. The current financial statements are shown here Sales Costs $ 31,700,000 26,426,900 Taxable income laxes $ 5,273,100 1,845,585 Net income $ 3,427,515 Dividends Addition to retained earnings $ 1,371,006 2,056,509 Balance Sheet Assets Liabilities and Equity Current assets $ 7,330,000 Short-term debt Long-term debt $ 5,389,000 7,291,000 Fixed assets 20,566,000 Common stock $ 959,000 Accumulated retained earnings Total equity Total liabilities and equity 14,257,000 $ 15,216,000 $ 27,896,000 Total assets $27,896,000 a. Calculate the external financing needed for next year. (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) External financing needed 2,034,126 b-1. Prepare the firm's pro forma balance sheet for next year. (Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.) Balance Sheet Assets Liabilities and equity Current assets $8,796,000 Short-term debt $ 6,466,800 Long-term debt 7,291,000 Fixed assets 24,679,200 Common stock Accumulated retained earnings $ 959,000 16.721.992 . Total equity 17,680.992 Total assets S 33,475,200Total liabilities and equity $ 31,438,792 b-2. Calculate the external financing needed. (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) External financing needed $2,467,274Step by Step Solution
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