Intro

The Onion had $11 million of sales this year, which are expected to grow by 20% next year. The projected profit margin is 8% and its retention ratio is 30%. The balance sheet at the end of this year is as follows (in $ million):

Assets			Liabilities and Equity
Cash & equivalents	3.4		Accounts payable	3.4
Accounts receivable	2.8		Accrued wages	1.5
Inventory	1.2		Notes payable	3.2
Current assets	7.4		Current liabilities	8.1
Equipment	18.2		Long-term debt	5.5
Real estate	14.3		Total liabilities	13.6
Fixed assets	32.5		Equity	26.3
Total assets	39.9		Total liab. & equity	39.9

Assume that all assets are operating at full capacity, except that fixed assets operate at 95% of capacity.

Attempt 1/8 for 10 pts.

Part 1

What is the expected change in sales for next year (in $ million)?

Submit

Attempt 1/8 for 10 pts.

Part 2

What is the projected increase in assets for next year (in $ million)?

Submit

Attempt 1/8 for 10 pts.

Part 3

What is the projected increase in liabilities for next year (in $ million)?

Submit

Attempt 1/8 for 10 pts.

Part 4

What is the projected increase in retained earnings for next year (in $ million)?

Submit

Attempt 1/8 for 10 pts.

Part 5

What is the required new funds (RNF) for next year (in $ million)?