(Related to Checkpoint? 17.1)???(Discretionary financing? needs)??In the spring of 2013 the Caswell Publishing Company established a custom publishing business for its business clients. These clients consisted principally of? small- to? medium-size companies in Round? Rock, Texas. ? However, the? company's plans were disrupted when they landed a large printing contract from Dell Computers Corp.? (DELL) that they expected would run for several years. ? Specifically, the new contract would increase firm revenues by 100 percent. ? Consequently, Caswell's management knew they would need to make some significant changes in firm? capacity, and quickly. The following balance sheet for 2013 and pro forma balance sheet for 2014 reflect the? firm's estimates of the financial impact of the 100 percent revenue? growth:??

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a.??How much new discretionary financing will Caswell require based on the above? estimates?

b.??Given the nature of the new contract and the specific needs for financing that the firm? expects, what recommendations might you offer to the? firm's CFO as to specific sources of financing the firm should seek to fulfill its? DFN?

a. The discretionary financing needs are

?$nothing.

?(Round to the nearest? dollar.)

b.??Given the nature of the new contract and the specific needs for financing that the firm? expects, what recommendations might you offer to the? firm's chief financial officer as to specific sources of financing the firm should seek to fulfill its? DFN????(Select all the choices that apply? below.)

A.

Common stock.

B.

Sale of fixed assets.

C.

Retained earnings.

D.

?Long-term debt.

E.

Notes payable.

elated o Checkpoint 7.1 'scre nary financing needs nthe spnng2013 the Caswe Publ57ng es ab she a custo p I shrg business or and quickly h tolowng baancesheat tor 2 13 and pro to a balance shoot to 2014 rc ect the tr is estimates ot the t nancial impact on the 100 perc art cnu a. How much new discrctioncry financing wil Cawall req.ire bazed on the above esimate? Tha ascrat.cnary tranc ing nasdsicund to tha nsanest dolar) busness clierts These c emts corsisted pnncip y' s al-to medium-size COTS gnes in Rond Rock Te as owe er the co my's plans were o h: A Common stock. D. Sala a ted ascts C. Rtained amngs LD. Long-lem det DE, Notes pable