Q Search this cou Week 7: Homework retained earnings for the balance sheet without actually constructing a full income statement.) Enter your answers in millions. For example, an answer of $10,550,000 should be entered as 10.55. Round your answers to two decimal places. Upton Computers Pro Forma Balance Sheet December 31, 2020 (Millions of Dollars) Cash $ 4.20 Receivables $ 31.20 Inventories $ 69.60 Total current assets s 105 Net Fixed assets 5 42 Total assets $ 147 $ 10.80 Accounts payable Notes payable $ 18 Line of credit 5 $ 10.20 X>$ Accruals $ Total current liabilities 35.5 5 6 Mortgage loan Common stock $ 7.56 Retained earning Totalbies and equity 5 167 Q Search this course Week 7: Homework retained earnings for the balance sheet without actually constructing a full income statement.) Enter your answers in milions for cample, anawwer. $10,550,000 should be entered as 10.55. Round your answers to two decimal places. X Upton Computers Pro Forma Balance Sheet December 31, 2020 (Millions of dollars) Cash $ 4.20 Receivables 5 31.20 Inventories $ 69.60 Total current assets $ 105 Net fixed assets $ 42 Total assets 5 147 Accounts payable $ 10.80 Notes payable $ 10 Line of credit 5 8.5 $ Accruals 10.20 Total current abilities $ 35.5 ES $ Mortgage loan Common stock 5 15 5 7.56 Retained varnings 1 147 Total abilities and equity MacBook Ale 9 eBook Forecasted Statements and Ratios Upton Computers makes bulk purchases of small computers, stocks them in conveniently located warehouses, ships them to its chain of retail stores, and has a staff to advise customers and help them set up their new computers. Upton's balance sheet as of December 31, 2019, is shown here (millions of dollars): Cash $ 3.5 Accounts payable $ 9.0 Receivables 26.0 Notes payable 18.0 Inventories 58.0 Line of credit 0 Total current assets $87.5 Accruals 8.5 Net fixed assets 35.0 Total current liabilities $ 35.5 Mortgage loan 6.0 Common stock 15.0 Retained earnings 66.0 Total assets $122.5 Total liabilities and equity $1225 Sales for 2019 were $450 million and net income for the year was $13.5 million, so the firm's profit margin was 3.0. Upton paid dividends of $5.4 million to common stockholders, so its payout ratio was 40% Its tax rate was 25%, and it operated at full capacity Assume that all assets/sales ratios, spontaneous liabilities/sales taticis, the profit margin, and the payout ratio remain constant in 2020. Do not round Intermediate calculations. It sales are projected to increase by $94.5 million, or 21%, during 2020, use the AFN equation determine Upton's projected external capita ment Enter your answers in millions. For example, an answer of $10,550,000 should be entered as 10.55. Round your answer to two decimal ploos 31.44 minion b. Using the APN equation, determine Upton's self-supporting growth rate. That is what is the maximum growth rate the firm can achieve without having employ nonpontaneous external funds found your answer to two decimal places 6.40 c. Use this forecasted financial statement method to forecast Upton's balance sheet for December 31, 2020. Assume that all additional external capital is raised as a line of credit at the end of the yer and is reflected because the debt is added at the end of the year, there will be no additional intereste due to the new debt) Aume Upton's profit margin and dividend payout ratio will be the same in 2020 as they were in 2019, What is the amount of the near credit reported on the 2020 forecasted balance sheets Hint You don't need to forecast the income statement because the line of credit iw taken out on the
