3. After studying the Financial Forecast and planning, go through the assumption date given below and calculate how much Discretionary financing will we need in 2021 year? Šuppose this year's sales will total $32 million. Next year, we forecast sales of $50 million. Net income should be 5% of sales. Dividends should be 50% of earnings. If this year's information's are as follows: This year % of $32m Assets Current Assets Fixed Assets Total Assets Liab. and Equity Accounts Payable |Accrued Expenses Notes Payable Long Term Debt Total Liabilities Common Stock Retained Earnings Equity Total Liab. & Equity $8m 25% $16m 50% $24m $4m $4m $1m 12.5% 12.5% ala $6m ala $15m $7m ala $2m $9m $24m
3. After studying the Financial Forecast and planning, go through the assumption date given below and calculate how much Discretionary financing will we need in 2021 year? Šuppose this year's sales will total $32 million. Next year, we forecast sales of $50 million. Net income should be 5% of sales. Dividends should be 50% of earnings. If this year's information's are as follows: This year % of $32m Assets Current Assets Fixed Assets Total Assets Liab. and Equity Accounts Payable |Accrued Expenses Notes Payable Long Term Debt Total Liabilities Common Stock Retained Earnings Equity Total Liab. & Equity $8m 25% $16m 50% $24m $4m $4m $1m 12.5% 12.5% ala $6m ala $15m $7m ala $2m $9m $24m
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:3. After studying the Financial Forecast and planning, go through the assumption date given
below and calculate how much Discretionary financing will we need in 2021 year?
Suppose this year's sales will total $32 million.
Next year, we forecast sales of $50 million.
Net income should be 5% of sales.
Dividends should be 50% of earnings.
If this year's information's are as follows:
This year
% of $32m
Assets
Current Assets
Fixed Assets
$8m
25%
$16m.
50%
Total Assets
$24m
Liab, and Equity
Accounts Payable
Accrued Expenses
Notes Payable
Long Term Debt
$4m
12.5%
$4m
12.5%
$1m
nla
$6m
Total Liabilities
$15m
Common Stock
Retained Earnings
Equity
Total Liab. & Equity
$7m
nla
$2m
$9m
$24m
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