Construct the current balance sheet for the firm

Assignment Help Finance Basics
Reference no: EM132460349

Problem: John smith cfo of smith florist ltd, has created the firm's pro forma balance sheet for the next fiscal year. sales are expected to grow by 10 percent to $360 million. current assets, fixed assets, and short-term debt are 20 percent, 75 percent, and 15 percent of sales, respectively. smith florist pays out 30 percent of its net income in dividends. the company currently has $105 million of long-term debt and $46 million in common stock par value. the profit margin is 9%.

a. Construct the current balance sheet for the firm using the projected sales figure.

b. Based on Mr. Smith's sales growth forecast, how much does Smith Florist need in external funds for the upcoming fiscal year?

c. Construct the firm's pro forma balance sheet for the next fiscal year and confirm the external funds needed that you calculated in part b.

Reference no: EM132460349

Questions Cloud

Robin income tax consequences : Insurance proceeds of $9,500 were received. What are Robin's income tax consequences resulting from this transaction?
Maximum deductible contribution that leon can make : What is the maximum deductible contribution that Leon can make to a traditional IRA?
What is the value of the contract in two months : Assume that the contract was signed at the "No arbitrage" forward price at t=0, what is the value of the contract in two months, at which time the index value
What is the yield to call for bond : Yield to Call: Fooling Company has a 10 percent callable bond outstanding on the market with 25 years to maturity, call protection for the next 10 years
Construct the current balance sheet for the firm : Construct the current balance sheet for the firm using the projected sales figure.
Coupon bonds and non-coupon bonds : What are the differences between coupon bonds and non-coupon bonds?
Describe analysis of the biases related to the assessments : Select a legal case from the list in Table 2-1 in Ch. 2 of Psychological Testing and Assessment or another case related to psychological assessment.
Calculate the equivalent value of thescheduled payments : Is anyone able to help me step by step with this question? I have been stuck on it for a while and cannot find an example anywhere.
How is the portrayal used to sell the product : Describe how you collected your ads, from what magazines, how many, dates.Discuss how gender is portrayed in your sample of ads.

Reviews

Write a Review

Finance Basics Questions & Answers

  Npv for the company project

Tall Trees, Inc. is using the net present value (NPV) when evaluating projects. You have to find the NPV for the company's project, assuming the company's cost of capital is 9.20 percent. The initial outlay for the project is $349,620. The project..

  Determining the gretchen statement

Gretchen says that there is no binding contract. Which of the following is true regarding Gretchen's statement?

  Calculate the value and expected return

The first is a 12-year bond that is selling at $1200 (par=$1000, 12% coupon interest), and your required rate of return on it is 12%.

  What is the company ledger balance and available balance

The manager notes that only the $33,000 payment of the 27th has cleared the bank. What is the company's ledger balance and available balance with its bank?

  Arrowbell company is a growing company

Arrowbell Company is a growing company. Two years ago, it decided to expand in order to increase its production capacity. The  ompany anticipates that the expansion program can be completed in another two years. Financial information for Arrowbell..

  What is behavioral research

In what ways is behavioral research similar to and different from research in the natural sciences, such as chemistry, biology, and physics?

  Explain the financial ratios calculated

Describe the three ratio categories. Explain the financial ratios calculated. Work in the answers to the questions from your Module 4 discussion.

  What would be the dollar profit

How much in dollars does it cost Yohe to produce the SY-20? What is the dollar sale price of the SY-20?b. What is the dollar profit that Yohe makes on the sale of the SY-20? What is the percentage profit? If the U.S. dollar was to weaken by 10% again..

  Explain why greater volatility or a longer term to maturity

Explain why greater volatility or a longer term to maturity leads to a higher premium on both call and put options.

  Identifying the potential markets for entry

why would a marketer consider expanding to overseas markets selectively to achieve his/her marketing objectives. explain with reasoning.

  Does firm appear to have effective corporate governance

loren seguara and dale johnson both work for sports products inc. a major producer of boating equipment and

  What are the costs of retained earnings and new common stock

Sun Instruments expects to issue new stock at $34.00 per share with estimated float costs of 7% of market price.The company currently pays a $2.10 cash dividend and has a 6% growth rate. What are the costs of retained earnings and new common stock..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd