Prepare the current balance sheet for the firm

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Dahlia Colby, CFO of Charming Florist Ltd., has created the firm's pro forma balance sheet for the next fiscal year. Sales are projected to grow by 12 percent to $350 million. Current assets, fixed assets, and short-term debt are 20 percent, 80 percent, and 10 percent of sales, respectively. Charming Florist pays out 30 percent of its net income in dividends. The company currently has $127 million of long-term debt and $55 million in common stock par value. The profit margin is 12 percent.

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

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

c-1. Prepare the firm's pro forma balance sheet for the next fiscal year.

c-2. Calculate the external funds needed.

Reference no: EM132005617

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