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I will thumbs up the correct answer! thank you! I can't seem to get the correct answer The Optical Scam Company has forecast a sales
I will thumbs up the correct answer! thank you! I can't seem to get the correct answer
The Optical Scam Company has forecast a sales growth of 20 percent for next year. The current financial statements are shown here: Income Statement 31,200,000 Sales 26,673,600 Costs 4,526,400 Taxable income 1,584,2400 Taxes $ 2,942,160 Net income 1,176,864 Dividends Addition to retained 1,765,296 earnings Balance Sheet Liabilities and Owners' Equity Assets Current $ 7,280,000 Short-term debt $ 6,552,000 assets Long-term debt 5,248,000 Fixed assets 19,240,000 $ 2,902,000 Common stock Accumulated retained 11,818,000 earnings 14,720,000 Total equity 26,520,000 26,520,000 Total assets $ Total liabilities and equity $ a. Using the equation from the chapter, calculate the external financing needed for next year. (Do not round intermediate calculations and round your answer to the nearest whole dollar amount, e.g., 32.) External financing needed b- Construct the firm's pro forma balance sheet for next year. (Do not round 1. intermediate calculations and round your answers to the nearest whole dollar amount, e.g., 32.) Balance Sheet Assets Liabilities and equity Short-term debt Current assets Fixed assets Long-term debt Common stock Accumulated retained earnings Total equity Total assets Total liabilities and equity b-2. Calculate external financing needed. (Do not round intermediate calculations and round your answer to the nearest whole dollar amount, e.g., 32.) External financing needed c. Calculate the sustainable growth rate for the company based on the current financial statements. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Sustainable growth rateStep by Step Solution
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