User Account

All Pages

What is the amount of discretionary financing needed

Assignment Help Finance Basics
Reference no: EM132460097

Problem: A corporation established its projected sales at $210 million. It is using its current year balance sheet as a basis for creating a pro forma balance sheet. It estimates cash will be 7% of projected sales, accounts receivable will be 19% of projected sales, and property, plant, and equipment (PP&E) will be 55% of projected sales. Accounts payable are estimated to be 12% of projected sales. Owners' equity is $34 million. Long-term debt is $90 million. Additionally, the firm raised $12.9 million of equity capital.

Required:

Question: What is the amount of discretionary financing needed?

Could you explain how you came up with this answer?

Reference no: EM132460097

Questions Cloud

How do him professionals help the organization : How do HIM professionals help their organization promote principles of Data Quality Management? What role do HIM professionals play in reporting Data Quality.
What does this mean if you are a potential seller : You read that European call options on pounds sterling having a strike of £/$: 1.31 and a maturity of next March are now quoted at 5.88c.
Determine the optimal leverage of two private equity : Do private equity firms have value when investors divest their investment?
What are the decision variables : What are the decision variables? What is the objective function? What contributes to the objective function? What are the constraints?
What is the amount of discretionary financing needed : What is the amount of discretionary financing needed?
What is the discretionary financing needed : Shareholders' equity is $1.5 million. Pro forma income is $3.6 million. The company has no long-term debt.
Analyze leadership and management roles in change management : Analyze leadership and management roles in change management. An effective leader must possess the skills, emotional intelligence, and knowledge base.
Determine and prepare an adjusted trial balance : Post the balance from the unadjusted trial balance and the adjusting entries in to the T-accounts.Prepare an adjusted trial balance.
Correlation coefficient between their returns : In forming a portfolio of two risky assets, what must be true of the correlation coefficient between their returns if there are to be gains from diversificatio

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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