Solve the following questions

Q1. At the Careers in Finance Web site, www.careers-in-finance.com, you will find information on career opportunities in seven different areas of finance. First click on Corporate Finance in the Areas to Explore section and use the various subsections to answer the following questions: 1. What are the primary responsibilities of the financial manager? 2. Summarize the types of skills a financial manager needs. 3. Describe the key job areas in corporate finance. 4. What are the salary ranges for the following positions in corporate finance: rookie financial analyst, credit manager, chief financial officer? How do these compare to salaries at General Motors or PepsiCo? Q2. To improve its competitive position, Martin Manufacturing is planning to implement a major equipment modernization program. Included will be replacement and modernization of key manufacturing equipment at a cost of $400,000 in 2004. The planned program is expected to lower the variable cost per unit of finished product. Terri Spiro, an experienced budget analyst, has been charged with preparing a forecast of the firm's 2004 financial position, assuming replacement and modernization of manufacturing equipment. She plans to use the 2003 financial statements presented on pages 92 and 93, along with the key projected financial data summarized in the following table. Martin Manufacturing Company Key Projected Financial Data (2004) Data item Value Sales revenue $6,500,000 Minimum cash balance $25,000 Inventory turnover (times) 7.0 Average collection period 50 days Fixed-asset purchases $400,000 Dividend payments $20,000 Depreciation expense $185,000 Interest expense $97,000 Accounts payable increase 20% Accruals and long-term debt Unchanged Notes payable, preferred and common stock Unchanged Required a Use the historical and projected financial data provided to prepare a pro forma income statement for the year ended December 31, 2004. (Hint: Use the percent-of-sales method to estimate all values except depreciation expense and interest expense, which have been estimated by management and included in the table.) Class Activity b. Use the projected financial data along with relevant data from the pro forma income statement prepared in part a to prepare the pro forma balance sheet at December 31, 2004. (Hint: Use the judgmental approach.) c. Will Martin Manufacturing Company need to obtain external financing to fund the proposed equipment modernization program? Explain