Question
The most recent statement of financial position and statement of comprehensive income of Lucky Inc. are shown here: Statement of Financial Position Recent Recent ASSETS
The most recent statement of financial position and statement of comprehensive income of Lucky Inc. are shown here:
Statement of Financial Position | |||
| Recent |
| Recent |
ASSETS | LIABILITIES & OWNERS EQUITY | ||
Current Assets | Current Liabilities | ||
Cash | $1,500 | A/P | $2,000 |
Acc./Receiv. | 2,500 | Notes/Pay. | 3,000 |
Inventory | 2,000 | Total | 5,000 |
Total | 6,000 | LT Debt | 2,000 |
Fixed Assets | Owners Equity | ||
Net PP&E | 8,000 | Com Shares | 2,900 |
Total Assets | 14,000 | RE | 4,100 |
|
| Total | 7,000 |
|
| Total L & OE | 14,000 |
Statement of Comp. Income | |
Sales | 7,000 |
Costs | 3,000 |
EBT | 4,000 |
Taxes (40%) | 1,600 |
Net Income | 2,400 |
Dividends | 900 |
Add. To RE | 1500 |
Generate the pro forma statements for the next year based on the assumption that the growth rate is 15%. Calculate the external financing needed. Assume the plan is to keep the retention rate constant, and the A/P, the fixed assets, and the current assets grow at the same rate as the Sales growth rate, which is 15%.
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