The Minoso Corporation anticipates a 20 percent increase in sales for 2014, 2015, and 2016. Minoso is

Question:

The Minoso Corporation anticipates a 20 percent increase in sales for 2014, 2015, and 2016. Minoso is currently operating at full capacity and thus expects to increase its investment in both current and fixed assets in order to support the increase in forecasted sales. The Minoso Corporation's 2013 income and balance sheet statements are given in problem

A. Prepare an Excel spreadsheet model that projects the income statement, balance sheet, and statement of cash flows for 2014 prior to obtaining any additional financing. Use a separate AFN long-term financing (liability/equity) account to show the amount of financing needed to make the balance sheet balance.

B. Extend your 2014 spreadsheet-based financial statement projections for two additional years (2015 and 2016). What is the total amount of AFN needed over the three-year period?

C. Show how your spreadsheet model projections will change if the AFN from Part B is financed by issuing additional long-term debt at a 10% interest rate.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...