Hello,

I need help as soon as possible please with my finance class questions that is attached here, which is 5 through 7.

5. After conducting an interview with the production manager, Jim realizes that Oats 'R' Us is operating its plant at 90% capacity, how much additional nancing will it need to support growth rates ranging from 25% to 40%? 6. What are some actions that Mason can take in order to alleviate some of the need for external financing? Analyze the feasibility and implications of each suggested action. 7. How critical is the financial condition of Oats 'R' Us? Is Vicky justified in being concerned about the need for nancial planning? Explain why. 8. Given that Mason prefers not to deviate from the firm's 2004 debt-equity ratio, what will the firm's pro-forma income statement and balance sheet look like under the scenario of 40% growth in revenue for 2005 (ignore feedback effects). Financial Forecasting Growing Pains \"We are growing too fast,\" said Mason. "1 know i shouldn't complain, but we better have the capacity to ll the orders or we'll be hurting ourselves.\" Vicky and Mason Coleman started their oatmeal snacks company in 1998, upon the suggestions of their close friends who simply loved the way their oatmeal tasted. Mason. a former college gymnastics coach, insists that he never \"intmded to start a business,\" but the thought of being able to support his college team played a signicantrnleinmotivatinghimtngoforit. After considerable help from local retailers and a sponsorship by a major bread company their firm. Oats 'R' Us, was established in 1993 and reached sales of over $4 million by 2004. Given the current trend of eating healthy snacks and keeping t, hhson was condent that sales would increase signicantly over the next few years. The indmtry growth forecast had been estimated at 30% per year and Mason was condent that his firm would be able to at least achieve it not beat that rate ofsalesgtuwth. \"We must plan for the future," said Vicky. l\"l think we've been playing it by ear for too long.\" Mason immediately called the treasurer, Jim Moroney. \"Jim, Ineed to know how much additional funding we are going to need for the next year.\" said Mason. \"The growth rate of revenues should be between 25% and 40%. i would really appreciate if you can have the forecast on my desk by early next week.\" JimImewthathisshingplansfortbeweekendhadbetterbeputasidesinceitwasgoingtobea longandbusyweekendforhim. He immdiatelyasltedtbeaomunngtlepamnemto givebimthelast threeyears' nancialstatements(seeTables 1 and2JandgotrightiJoworltl Sales Cost of Goods Sold Gross Pmt Selling and GM Expenses Fixed Expenses Depreciaon Expense Earnings Before mm and Tues Interest Expense Earnings Before Tues Taxes 9 40% Net Income 170,040 Retained Earnings 102.024 Table 2 Oats 'R' Us Balance Sheet For the Year Ended Dec. 31 2004 Asset: 2004 2002 Cash and Cash Eqmvalents 60.000 97.376 40.000 Accounts Receivables 250.416 175.000 150.000 Inventory 511 500 390 000 335 000 Total Current Assets 821.916 562.376 533.000 Plant 0 Equipment 560.000 560.000 560.000 Accumulated Depreciation 175 000 150 000 125 000 Net Plant 0 Equipment 385 000 410 000 4 000 1,206.91 Total! A8808 6 1,072,376 968,000 Liabiiiiies and me squiiy Accounts Payable 135.000 151.352 120.000 Notes Payable 275.000 275.000 250.000 Other Current Uabililies 43.952 50.000 40.000 imamremuaniiiies 453,052 475.352 424.000 Long-term Debt 275.000 250.000 300,000 Total Liabilities 720,952 720,352 724,000 Owner's Capilal 155.550 155.500 155,500 Retained Eamings 322 404 100 404 as 440 1:205:91 Total Unmanned cum-55mm 0 1,072,070 000