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Question: 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 $550 Million. Current Assets, Fixed Assets, And Short-term Debt Are 15 Percent, 80 Percent, And 5 Percent Of Sales, Respectively. The Company Pays Out 20 Percent Of Its Net Income In Dividends. …

Question: 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 $550 Million. Current Assets, Fixed Assets, And Short-term Debt Are 15 Percent, 80 Percent, And 5 Percent Of Sales, Respectively. The Company Pays Out 20 Percent Of Its Net Income In Dividends. …

Cheryl Colby, CFO of Charming Florist Ltd., has created thefirm’s pro forma balance sheet for the next fiscal year. Sales areprojected to grow by 10 percent to $550 million. Current assets,fixed assets, and short-term debt are 15 percent, 80 percent, and 5percent of sales, respectively. The company pays out 20 percent ofits net income in dividends. The company currently has $139 millionof long-term debt, and $67 million in common stock par value. Theprofit margin is 10 percent.
a. Prepare the current balance sheet for the firm using theprojected sales figure. (Accounts should be entered byorder of liquidity. Do not round intermediate calculations andenter your answers in dollars, not millions of dollars, e.g.1,234,567.)

BALANCE SHEET Assets Liabilities and equity Total equity Total liabilities and equity Total assets

b. Based on the sales growth forecast, how much does the companyneed in external funds for the upcoming fiscal year using the EFNequation from the textbook? (Do not round intermediatecalculations and enter your answer in dollars, not millions ofdollars, e.g. 1,234,567.)

External financing needed

c-1. Prepare the firm’s pro forma balance sheet for the next fiscalyear. (Accounts should be entered by order of liquidity. Donot round intermediate calculations and enter your answers indollars, not millions of dollars, e.g. 1,234,567.)

BALANCE SHEET Assets Liabilities and equity Total equity Total liabilities and equity Total assets

c-2. Calculate the external funds needed. (Do not roundintermediate calculations and enter your answer in dollars, notmillions of dollars, e.g. 1,234,567.)

External financing needed

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BALANCE SHEET Assets Liabilities and equity Total equity Total liabilities and equity Total assets External financing needed BALANCE SHEET Assets Liabilities and equity Total equity Total liabilities and equity Total assets External financing needed




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