USE THE FOLLOWING INFORMATION TO ANSWER THE QUESTIONS 57-60 The balance sheet for the Regal Corp. for the year ending December 31, 2019 is shown below: Regal Corp. Balance Sheet as of December 31, 2019 (All figures in dollars) Cash 250 Notes payable 800 Accounts receivable 3,500 Accounts payable 3,200 Inventory 6,250 Accruals 1.100 Current assets 10,000 Current liabilities 5,100 Net fixed assets 6,400 Long-term debt 4,500 Total assets 16,400 Common stock ($0.20 par) 1,200 Additional paid in capital 2,600 Retained earnings 3,000 Total liabilities and equity 16,400 Regal had sales revenue in 2019 of $75,000. Regal's projected net profit margin for 2020 is 4 percent and Regal plans to pay a dividend of $0.25 per share on December 31, 2020. Compute Regal sustainable growth rate for 2020 assuming that cash in 2020 will be equal to 0.4% of 2020 sales (for example, if sales = 1000, cash will be 0.4% of 1000, or 4), the average collection period for 2020 will be 24 days (assume 75% of all sales are on credit and use a 360 day year), the inventory tumover ratio for 2020 will be 10 (use COGS Inventory and assume 2020 COGS = 80% of sales), net fixed assets will grow as a percent of sales, the 2020 current ratio will be 2.2, and Regal will issue (on July 1, 2020) 1,000 shares of additional stock in 2020 at a sale price per share of $0.15 per share. Compute and record your answer as a percent rounded to 2 decimal places (for example, record.1358934 as 13.59%). Now construct a 2020 proforma balance sheet (1.e., redo the balance sheet above) using the guidelines above and the sustainable growth rate answer you found to prove that the growth rate you computed is in fact correct. Note that if your sustainable growth rate is correct, your proforma balance sheet should balance with no outside funds (i.e., additional long-term debt, common stock or additional paid in capital) needed. Round all figure your proforma balance sheet to whole dollars. From that proforma balance sheet answer the questions below: 57. What is cash on Regal Corp.'s 2020 proforma balance sheet? 58. What is accounts receivable on Regal Corp.'s 2020 proforma balance sheet? 59. What is total assets on Regal Corp.'s 2020 proforma balance sheet? 60. What is total liabilities (1.e., current liabilities + long term debt) on Regal Corp.'s 2020 proforma balance sheet? USE THE FOLLOWING INFORMATION TO ANSWER THE QUESTIONS 57-60 The balance sheet for the Regal Corp. for the year ending December 31, 2019 is shown below: Regal Corp. Balance Sheet as of December 31, 2019 (All figures in dollars) Cash 250 Notes payable 800 Accounts receivable 3,500 Accounts payable 3,200 Inventory 6,250 Accruals 1.100 Current assets 10,000 Current liabilities 5,100 Net fixed assets 6,400 Long-term debt 4,500 Total assets 16,400 Common stock ($0.20 par) 1,200 Additional paid in capital 2,600 Retained earnings 3,000 Total liabilities and equity 16,400 Regal had sales revenue in 2019 of $75,000. Regal's projected net profit margin for 2020 is 4 percent and Regal plans to pay a dividend of $0.25 per share on December 31, 2020. Compute Regal sustainable growth rate for 2020 assuming that cash in 2020 will be equal to 0.4% of 2020 sales (for example, if sales = 1000, cash will be 0.4% of 1000, or 4), the average collection period for 2020 will be 24 days (assume 75% of all sales are on credit and use a 360 day year), the inventory tumover ratio for 2020 will be 10 (use COGS Inventory and assume 2020 COGS = 80% of sales), net fixed assets will grow as a percent of sales, the 2020 current ratio will be 2.2, and Regal will issue (on July 1, 2020) 1,000 shares of additional stock in 2020 at a sale price per share of $0.15 per share. Compute and record your answer as a percent rounded to 2 decimal places (for example, record.1358934 as 13.59%). Now construct a 2020 proforma balance sheet (1.e., redo the balance sheet above) using the guidelines above and the sustainable growth rate answer you found to prove that the growth rate you computed is in fact correct. Note that if your sustainable growth rate is correct, your proforma balance sheet should balance with no outside funds (i.e., additional long-term debt, common stock or additional paid in capital) needed. Round all figure your proforma balance sheet to whole dollars. From that proforma balance sheet answer the questions below: 57. What is cash on Regal Corp.'s 2020 proforma balance sheet? 58. What is accounts receivable on Regal Corp.'s 2020 proforma balance sheet? 59. What is total assets on Regal Corp.'s 2020 proforma balance sheet? 60. What is total liabilities (1.e., current liabilities + long term debt) on Regal Corp.'s 2020 proforma balance sheet
