Intro The whole year income statement and end of year balance sheet numbers are provided for 2020. As CFO, you are to forecast 2021 numbers (blank column) based on the following assumptions: 582 ? Income Balance sheet statement ($ million) ($ million) Current Sales 1,000 388 Debt assets Fixed Costs 850 assets 1,552 Equity 1,358 Net Total 150 1,940 Total 1,940 income assets Sales, assets and costs are expected to grow by 18% in 2021. The company is expected to pay NO dividend in 2021, and will keep the debt level unchanged. Part 1 Attempt 1/1 for 10 pts. In the forecast, which of the following financial ratios are assumed unchanged throughout 2020-2021? Must select ALL to earn points. Check all that apply: Ogross profit margin debt-equity ratio total asset turnover ROE accounts receivable turnover profit margin Part 2 Attempt 1/2 for 10 pts. Is the 18% growth feasible without external equity financing? If not, what is EFN for year 2021? 0+ decimals Submit Part 3 Attempt 1/2 for 10 pts. If EFN is NOT funded, compute the growth rate the firm can achieve in 2021. 4+ decimals Submit Part 4 Attempt 1/2 for 10 pts. As a check-up on the rate you just computed, fill the projected 2021 numbers based on the scenario in Part 3. What do you fill in for end of 2021 Equity balance? 0+ decimals Submit Intro The whole year income statement and end of year balance sheet numbers are provided for 2020. As CFO, you are to forecast 2021 numbers (blank column) based on the following assumptions: 582 ? Income Balance sheet statement ($ million) ($ million) Current Sales 1,000 388 Debt assets Fixed Costs 850 assets 1,552 Equity 1,358 Net Total 150 1,940 Total 1,940 income assets Sales, assets and costs are expected to grow by 18% in 2021. The company is expected to pay NO dividend in 2021, and will keep the debt level unchanged. Part 1 Attempt 1/1 for 10 pts. In the forecast, which of the following financial ratios are assumed unchanged throughout 2020-2021? Must select ALL to earn points. Check all that apply: Ogross profit margin debt-equity ratio total asset turnover ROE accounts receivable turnover profit margin Part 2 Attempt 1/2 for 10 pts. Is the 18% growth feasible without external equity financing? If not, what is EFN for year 2021? 0+ decimals Submit Part 3 Attempt 1/2 for 10 pts. If EFN is NOT funded, compute the growth rate the firm can achieve in 2021. 4+ decimals Submit Part 4 Attempt 1/2 for 10 pts. As a check-up on the rate you just computed, fill the projected 2021 numbers based on the scenario in Part 3. What do you fill in for end of 2021 Equity balance? 0+ decimals Submit
