Question
Last year, Hoopla Nets reported the simplified financial statements shown below (assuming no income taxes). Income Statement Balance Sheet Sales $84,300 Assets $421,500 Expenses 67,440
- Last year, Hoopla Nets reported the simplified financial statements shown below (assuming no income taxes).
| Income Statement | Balance Sheet |
| Sales $84,300 | Assets $421,500 |
| Expenses 67,440 | Debt 168,600 |
| Equity 252,900 |
The firm is forecasting a sales increase of 6 percent. Assets and expenses are proportional to sales, but debt and equity are not. The firm does not plan to pay dividends.
a)Calculate the projected total assets.
b) Calculate the projected owners equity.
c)How much external financing will the firm need to support its growth?
(SHOW FULL WORKING OUT)
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Audit Of EPAs Fiscal 2013 And 2012 Consolidated Financial Statements
Authors: U.S. Environmental Protection Agency
1st Edition
1500696218, 978-1500696214
