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I need help finishing the last of the yellow squares... Can someone help as soon as possible? Please and Thanks! Start with the partial model
I need help finishing the last of the yellow squares... Can someone help as soon as possible? Please and Thanks!
Start with the partial model in the file Ch12 P10 Build a Model.xlsx on the textbook's Web site, which contains the 2016 financial statements of Zieber Corporation. Forecast Zelber's 2017 Income statement and balance sheets. Use the following assumptions: (1) sales grow by 6%. (2) The ratios of expenses to sales, depreciation to fixed assets, cash to sales, accounts receivable to sales, and Inventorles to sales will be the same In 2017 as in 2016. (3) Zelber will not Issue any new stock or new long-term bonds. (4) The interest rate is11% for long-term debt and the interest expense on long-term debt is based on the average balance during the year. (5) No interest is earned on cash. (6) Regular dividends grow at an % rate. (6) Calculate the additional funds needed (AFN). If new financing is required, assume it will be raised by drawing on a line of credit with an interest rate of 12%. Assume that any draw on the line of credit will be made on the last day of the year, so there will be no additional Interest expense for the new llne of credit. if surplus funds are avallable, pay a special dividened 11 14 Key Input Data: Used in the forecast 16 17 18 19 Tax rate Dividend growth rate Rate on notes payable-term debt, rstd Rate on long-term debt, rd Rate on line of credit, rLOC 40% 8% 9% 11% 12% a. What are the forecasted levels of the line of credit and special dividends? (Hints: Create a column showing the ratios for the current year; then create a new column showing the ratlos used In the forecast. Also, create a prellminary forecast that doesn't include any new line of credit or special dividends. Identify the financing deficit or surplus in this preliminary forecast and then adod a new column that shows the final forecast that Includes any new line of credit or special dividend.) 29 Begin by calculating the appropriate historical ratlos In Column E. Then put these ratios and any other Input ratios in Column G Forecast the prellminary balance sheets and Income statements in Column H. Don't Include any line of credit or speclal dividend In the prellminary forecast. 35 After completing the prellminary forecast of the balance sheets and Income statement, go to the area below the preliminary forecast and Identity the financing deficlt or surplus. Then use Excel's IF statements to specity the amount of any new line of credit OR special dividend (you should not have a new line of credit AND a special dividend, only one or the other) After specifying the amounts of the special dividend or line of credit, create a second column ( for the final forecast next to the 4 column for the prelliminary forecast (H). In this final forecast, be sure to Include the effect of the special divldend or line of credit
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