Carter Paint Company has plants In four provinces. Sales last year were $100 million, and the balance sheet at year-end is similar in percent of sales to that of previous years (and this will continue in the future). All assets and current liabilities will vary directly with sales. Assume the firm is already using capital assets at full capacity 36 Meseta Canh Accounts receivable Tnventory Curranse Capital ansate Balance sheet is willione) Liabilities and shareholders uity $8 Accounts payable 12 Aceved wagas 21 Accrued taxe 41 Current abilities 41 Long-term dabt Common stock Notained earning $82 Total liabilities and shareholders' equity 4 25 15 20 32 382 Total The firm has an aftertax profit margin of 3 percent and a dividend payout ratio of 20 percent a. If sales grow by 10 percent next year, determine how many dollars of new funds are needed to finance the expansion. (Do not round Intermediate calculations. Enter the answer in millone, Round the final answer to 3 decimal places.) The firm needs $ million in external funds b. Prepare a pro forma balance sheet with any financing adjustment made to long-term debt. (Do not round Intermediate calculations. Input all answers as positive values. Be sure to list the assets and liabilities in order of their liquidity, Enter the answers in millione. Round the final answers to 2 decimal places) Balance sheet (1 millions) sets Liabilities and shareholders Equity (Click to select) (Click to select) Click to select) (Click to select) Click to select) Click to select) b. Prepare a pro forma balance sheet with any financing adjustment made to long-term debt. (Do not round Intermedia calculations. Input all answers as positive values. Be sure to list the assets and liabilities in order of their liquidity. E answers in millions. Round the final answers to 2 decimal places.) hanat (Click to select) (Click to select) (Click to select) Balance sheet It willions) Liabilities and that holders' quity (Click to select) (Click to select) (Click to select) v Current wanata (Click to select) Current liabilities (Click to select) (Click to select) (Click to select) Total assets Total lisbilities and shareholders' equity c. Calculate the current ratio and total debt to assets ratio for each year (Do not round Intermediate calculations, Rour answers to 1 decimal places.) Year Year 2 Current ratio Total debt / set Carter Paint Company has plants in four provinces. Sales last year were $100 million, and the balance sheet at year-end is similar in percent of sales to that of previous years (and this will continue in the future) All assets and current liabilities will vary directly with sales. Assume the firm is already using capital assets at full capacity, Balance Sheet (in 8 millions) Assets Liabilities and shareholders' quity Cash $8 Accounts payable Accounts receivable 12 Acerved wages Inventory 21 Accrued taxes Current annet 41 Current liabilities Capital assets 41 Long-term debt Common stock Retained earning Total anseta $42 Total liabilities and shareholders' equity || $6 5 4 15 15 20 32 $82 The firm has an aftertax profit margin of 3 percent and a dividend payout ratio of 20 percent. a. If sales grow by 10 percent next year, determine how many dollars of new funds are needed to finance the expansion (Do not round Intermediate calculations. Enter the answer in millons. Round the final answer to 3 decimal places.) The firm needs $ million in external funds. b. Prepare a pro forma balance sheet with any financing adjustment made to long-term debt. (Do not round Intermediate calculations. Input all answers as positive values. Be sure to list the assets and liabilities in order of their liquidity, Enter the answers in millions. Round the final answers to 2 decimal places.) Balance sheet (8 millions) Liabilities and shareholders quity Cash Accounts payable Accounts receivable Accrued wages Inventory Accrued taxes Anet b. Prepare a pro forma balance sheet with any financing adjustment made to long-term debt. (Do not round Intermediate calculations. Input all answers as posltive values. Be sure to list the assets and liabilities in order of their liquidity. Enter the answers in millions. Round the final answers to 2 decimal places.) Balance Sheet is million) Assets Laabilities and shareholdere Equity Cash Accounts payable Accounts receivable Accrued wages Inventory Accrued taxes Current annet Current liabilities (Click to select) Long-term debt Common stock Retained earings Total assets Total liabilities and shareholders' oquity c. Calculate the current ratio and total debt to assets tatlo for each year. (Do not round Intermediate calculations, Round the final answers to 1 decimal places.) Year 1 27 x Year? 27 Current ratio Total debt sta
