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Zapatera Enterprises is evaluating its financing requirements for the coming year. The firm has only been in business for one year, but its CFO predicts
Zapatera Enterprises is evaluating its financing requirements for the coming year. The firm has only been in business for one year, but its CFO predicts that the firms operating expenses, current assets, net fixed assets, and current liabilities will remain at their current proportion of sales.
Last year Zapatera had million in sales with net income of million. The firm anticipates that next years sales will reach million with net income rising to million. Given its present rate of growth, the firm retains all of its earnings to help defray the cost of new investments.
Estimate Zapaters total financing requirements total assets and its net funding requirements discretionary financing needed for Note: Use the percentage of sales in Zapatera Enterprises balance sheet for Hint: Make sure to round all intermediate calculations to at least five decimal places.
Complete the pro forma balance sheet for below
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