Exercises #6-#10 - Cheryl 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 10 percent to $420 million. Current assets fixed assets and short-term debt are 20 percent, 75 percent and 15 percent of sales, respectively. Charming Florist pays out 30 percent of its net income in dividends. The company currently has $120 million of long-term debt and $48 million in common stock par value. The profit margin is 9 percent. Construct the firm's pro forma balance sheet for the next fiscal year and confirm the external funds needed for the upcoming fiscal year. Assets Current assets Fixed assets Total assets Liabilities and equity Short-term debt Long-term debt Common stock Accumulated retained earnings Total equity Total liabilities and equity Once you have done that, answer the following questions: Exercise #6 - Net Income = $_ Exercise #7 - Addition to Accumulated retained earnings = $ Exercise #8 - Total Assets = $_ Exercise #9 - Total Equity = $_ Exercise #10 - The External Financing Needed = $_

Exercises #6-#10 - Cheryl 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 10 percent to $420 million. Current assets fixed assets and short-term debt are 20 percent, 75 percent and 15 percent of sales, respectively. Charming Florist pays out 30 percent of its net income in dividends. The company currently has $120 million of long-term debt and $48 million in common stock par value. The profit margin is 9 percent. Construct the firm's pro forma balance sheet for the next fiscal year and confirm the external funds needed for the upcoming fiscal year. Assets Current assets Fixed assets Total assets Liabilities and equity Short-term debt Long-term debt Common stock Accumulated retained earnings Total equity Total liabilities and equity Once you have done that, answer the following questions: Exercise #6 - Net Income = $_ Exercise #7 - Addition to Accumulated retained earnings = $ Exercise #8 - Total Assets = $_ Exercise #9 - Total Equity = $_ Exercise #10 - The External Financing Needed = $_

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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