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Help would greatly be appreciated in getting this one right for my last homework in the class. Executive FnJit's nancial manager believes that sales in
Help would greatly be appreciated in getting this one right for my last homework in the class.
Executive FnJit's nancial manager believes that sales in 2015 could rise by as much as ED'H: or by as little as ti'it. Assets and costs change in proportion to sales. debt remains constant. and no new equitglr nancing occurs. a. Recalculate the rststage pro tonne nancial statements under these two growth assumptions and calculate the required external nancing [All gures are in thousands}. [Enter your answers in thousands.) ne 20% Greek 'I'i'lt Gleam INCOME STATEMENT Revenue $9.5m 5 :| $ :| Cost of goods sold H.55D |:| |:| t t: t: Eamings beforetexes $ THE! E :| $ :| state and federal tax eta-t |:| |:| Net income $ 455 $ :| $ :| Retained earnings $ 152 $ :| $ :| BALANCE SHEET Assets Networking capital d sec 5 |:| s |:| F... ...... sen E :| Total assets $4.?5 s |:| s |:| Liabilities and shareholders' equity Longterm debt $1.9m s |:| s |:| Shareholders\" equity zest) |:| |:| Total liabilities and shareholders\" equity $4.?5 s |:| s |:| Required extemel nancing 5 :| $ :| b. Assume an}:r required external funds Will be raised by issuing longtenn debt and that anyr surplus funds will be used to retire such debt. Prepare the ecrnpleted (seedndstage} pro fonna balance sheet. {Enter your answers in thousands] b. Assume any required external funds 1will be raised by issuing lag-term debt and that any sirplus funds wil be used to retire suph debt. Prepare the completed {semnd-shge} pre furrna halsnse sheet. {Enter your answer: In thousands} Assets mmm saw sE sE madam mu E E Tutsi assets $4,?5n s [:] s I: Liabilities and shareholders' equity Lunmdau mm sE sE 235D Sharehulders\" equity Tdtal Iiebiities and sharehelders' equity 5435:: s [:] sStep by Step Solution
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