THE DIVIDEND RATE IN 2018: 1,012%

PLEASE SHOW THE FORMULAS USED FOR EACH STEP

Assumptions 1. Percent of sales method 2. Dividend rate 0% in 2017, Dividend rate 2018 1,012% Task Complete pro forma balance sheet for 2018 Calculate net new financing required in 2018 (hint: it is a difference between [assets - (liabilities tequity)] in 2018) hint2: equity 2018=equity 2017 + retained earnings in 2018 Additional info from income statement Sales Net Income 1000 162,5 1010 180 2017 2018 PRO FORMA BALANCE SHEET ASSETS Current assets cash accounts receivable inventories Total: Current assets 400 500 Long term assets 500 Total 1000 | LIABILITIES Current liabilities 200 Debt 300 Total 500 EQUITY Stockholders Equity 500 Total: Equity 500 Total Liabilities and Equity 1000 Net new financing required in 2018 Assumptions 1. Percent of sales method 2. Dividend rate 0% in 2017, Dividend rate 2018 1,012% Task Complete pro forma balance sheet for 2018 Calculate net new financing required in 2018 (hint: it is a difference between [assets - (liabilities tequity)] in 2018) hint2: equity 2018=equity 2017 + retained earnings in 2018 Additional info from income statement Sales Net Income 1000 162,5 1010 180 2017 2018 PRO FORMA BALANCE SHEET ASSETS Current assets cash accounts receivable inventories Total: Current assets 400 500 Long term assets 500 Total 1000 | LIABILITIES Current liabilities 200 Debt 300 Total 500 EQUITY Stockholders Equity 500 Total: Equity 500 Total Liabilities and Equity 1000 Net new financing required in 2018