Evaluating its financing requirements for the coming year

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Reference no: EM131180299

Zapatera Enterprises is evaluating its financing requirements for the coming year. The firm has been in business for only 1 year, but the CFO predicts the firm's operating expenses, current assets, net fixed assets, and current liabilities will remain at their current proportion of sales. Last year Zapatera had $12.73 million in sales and net income of $1.19 million. The firm anticipates that next year's sales will reach $15.96 million, with net incomerising to $2.08 million. Given its present high rate of growth, the firm retains all its earnings to help defray the cost of new investments. The firm's balance sheet for 2013 is found below: Current assets $3 million net fixed assets $5.6 million Accounts payable $3.2 million long-term debt $1.9 million Common stock $1.3 million paid-in capital $1.7 million retained earnings $500K common equity $3.5 million. Estimate Zapatera's financing requirements(that is, total assets) for 2014 and its discretionary financing needs(DFN) I need to know how to get the 2014 figure for Common Equity and DFN. Please.

Reference no: EM131180299

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