Last year, Software International had sales of $10,000,000, and expects a 40% increase in sales next year.Balance sheet items for Software International vary directly with sales increases as:

Cash	Accounts receivable	Inventory	Accounts payable	Other accruals
7.3%	29.1%	11%	21%	7%

Net fixed assets does not follow sales, but the firm will spend $1.1 million next year to expand its office space. The firm's net profit margin is 9%, and it pays out an annual cash dividend equal to 30% of net income. Create a pro forma balance sheet for next year assuming a 40% increase in sales and that any additional financing needed will be provided byfirstdrawing down their money market account, and if more is needed,increasing theirshort-term loan.

LATEST BALANCE SHEET
Assets		Liabilities and Owners' Equity
Cash	$ 304,836	Accounts payable	$1,260,433
Money market	454,937	Accruals	711,605
Accounts receivable	2,200,522	Short-term loan	0
Inventory	1,541,670	Total current liabilities	$1,972,038
Total current assets	$4,501,965
		Long-term debt	$2,800,000
Net fixed assets	2,695,486	Stockholders' equity	2,425,413
Total assets	$7,197,451	Total liabilities and equity	$7,197,451

T/F	Short-term loan is expected to be $539,063
T/F	Total current liabilities is expected to be $3,631,101
T/F	Stockholders' equity is expected to be $3,307,413
T/F	Additional financing needed is expected to be $994,000

A stock is selling for $38.25, and a put option on that stock with a strike price of $40 is selling for $1.76. What is thebestestimate of the put option's remaining time until expiration?

Last year, Software International had sales of $10,000,000, and expects a 40% increase in sales next year.Balance sheet items for Software International vary directly with sales increases as:

Cash	Accounts receivable	Inventory	Accounts payable	Other accruals
7.3%	29.1%	11%	21%	7%

Net fixed assets does not follow sales, but the firm will spend $1.1 million next year to expand its office space. The firm's net profit margin is 9%, and it pays out an annual cash dividend equal to 30% of net income. Create a pro forma balance sheet for next year assuming a 40% increase in sales and that any additional financing needed will be provided byfirstdrawing down their money market account, and if more is needed, increasing theirshort-term loan.

LATEST BALANCE SHEET
Assets		Liabilities and Owners' Equity
Cash	$ 304,836	Accounts payable	$1,260,433
Money market	454,937	Accruals	711,605
Accounts receivable	2,200,522	Short-term loan	0
Inventory	1,541,670	Total current liabilities	$1,972,038
Total current assets	$4,501,965
		Long-term debt	$2,800,000
Net fixed assets	2,695,486	Stockholders' equity	2,425,413
Total assets	$7,197,451	Total liabilities and equity	$7,197,451

T/F	Inventory is expected to be $1,981,670
T/F	Total current assets is expected to be $5,943,028
T/F	Total assets is expected to be $9,738,514
T/F	Accruals is expected to be $991,605