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Chapter 4 Assignment X + Chapter 4 Assignment X + Eduutmn

C newconnect.mheducation.com/flow/connect.html American Accent... Homepage - Britis... BCIT Computer O Chapter 4 Assignment Chapter 4 Assignment of 10 Foundations of Fi... Connect - To Do A... Saved My Account Help Save & Exit Other Bookmarks Submit Check my work 10 points eBook Print References Graw Hill Education Cholesterol Dairy Products has plants in five provinces and operates a very large home delivery service. Sales last year were $100 million, and the balance sheet at year-end is similar in percent of sales to that of previous years (and this will continue in the future). All assets and current liabilities will vary directly with sales. Assume the firm is already using capital assets at full capacity. Balance Sheet (in $ millions) Assets Cash Accounts receivable Inventory Current assets Capital assets Total assets Equity $4 9 30 $43 43 $86 Liabilities and Shareholders ' Accounts payable Accrued wages Accrued taxes Current liabilities Longterm debt Comrnon stock Retained earnings Total liabilities equity and shareholder ' s $5 3 2 $10 10 15 51 $86 The firm has an aftertax profit margin of 4 percent and a dividend payout ratio of 20 percent. a. If sales grow by 15 percent next year, determine how many dollars of new funds are needed to finance the expansion. (Enter the answer in millions. Round the final answer to 3 decimal places.) The firm needs $ million in external funds. b. Prepare a pro forma balance sheet with any financing adjustment made to long term debt. (Input all answers as positive values. Be sure to list the assets and liabilities in order of their liquidity. Enter the answers in millions. Round the final answers to 3 decimal places.) Assets Current assets Cash Accounts receivable Balance Sheet ($ millions) Liabilities and Shareholders ' Equity Current liabilities Accounts payable Accrued waaes < P.r.e.Y 8 Next