Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The CFO for Zippy Company has prepared a forecast for its next fiscal year. What is its discretionary need for funds? Income Statement Sales $1,800,000
The CFO for Zippy Company has prepared a forecast for its next fiscal year. What is its discretionary need for funds?
| Income Statement | |
| Sales | $1,800,000 |
| Net Income | 300,000 |
| Balance Sheet | |
| Cash | $480,000 |
| Accounts Receivable | 540,000 |
| Inventory | 420,000 |
| Property, Plant, Equip | 780,000 |
| Total Assets | $2,220,000 |
| Accounts Payable | 240,000 |
| Short-Term Notes Pay. | 250,000 |
| Long Term Debt | 550,000 |
| Common Stock | 200,000 |
| Retained Earnings | 830,000 |
| Total Financing Provided | |
| Discretionary Funding Needed (Plug) | |
| Total Financing Needed = Total Assets |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Chains Of Finance How Investment Management Is Shaped
Authors: Diane-Laure Arjalies, Philip Grant, Iain Hardie, Donald MacKenzie, Ekaterina Svetlova
1st Edition
0198802943, 978-0198802945
