Industry Supply Company

(The following 3 multiple choice questions are based on the analysis)

Consider the Industrial Supply Company example again. Assume that the company plans to maintain its dividend payment at the same level in 2014 as in 2013. Also assume that all of the additional financing needed is in the short-term notes payable. Work the pro forma analysis for 2014 under each of the following conditions.

1. Determine the amount of additional financing need
2. Work out pro forma financial statements (that is, balance sheet, income statement)

		case a	case b
change in Sales	S	3,750.00	3,000.00
change in expense	EXP	3,750.00	2,800.00

In Case b, what is the change in asset?

In Case b, what is the change in liabilities without additional financing (AFN)?

In Case b, what is the additional financing needed (AFN)? Fill the ?? celds

Industrial Supply Company example (Table 4.4) Examples with Additional fund needed Scenarios anlaysis case a 3,750.00 3,750.00 case b 3,000.00 2,800.00 change in Sales change in expense Current (from current number Asset Sales Dividend Expense Current liability (only AP is included Notes Payable (NPo AS AEXP 7,500.00 15,000.00 250.00 14,250.00 1,500.00 1,000.00 4,500.00 7,500.00