Balance Sheet Cash 3.5 Accounts Payable 9 Receivables 26 Notes Payable 18 Inventories 58 Accruals 8.5 Total Current Assets 87.5 Total Current Liabilities 35.5 Net Fixed Assets 35 Long Term Debt 6 Common Stock 15 Retained Earnings 66 Total Assets 122.5 Total Liabilities & Equity 122.5 Sales for 2010 were $350,000,000 and net income for the year was $10.5 million, so the firm?s profit margin was 3.0%. Upton paid dividends of $4.2 million to the common shareholders so its payout ratio was 40%. Its tax rate is 40%., and it operated at full capacity. Assume that all assets/sales ratios, spontaneous liabilities/sales ratios, the profit margin, and the payout ratio remain constant in 2011. Sales are projected to increase to $70,000,000, or by 20%, during 2011. Assuming all existing relationships remain constant: a. Calculate the required assets that will be required to support the projected increase in sales. b. Calculate the spontaneous liabilities that will arise with the increase in sales c. Calculate the AFN to determine Upton?s projected external capital requirements. d. Use the forecasted financial statement method to forecast Upton?s balance sheet for December 31 2011. Assume that all additional external capital is raised as a bank loan at the end of the year and is reflected in notes payable (because the debt is added at the end of the year, there will be no additional interest expense due to the new debt), assume of pens profit margin and dividend payout ratio will be the same in 2011 as they were in 2010. What is the amount of the notes payable reported on 2011 forecasted balance sheet? (Hint: you don?t need to forecast the income statements because you are given the projected sales, profit margin, and dividend payout ratio; these figures allow you to calculate 2000 weapon addition to retained earnings for the balance sheet.) This is my first time using this site. I am not really sure how it works. Can I pay for only this question or do I need to sign up monthly because I just needed these answers. Please let me know. How much would you charge for this problem?
Paper#12003 | Written in 18-Jul-2015Price : $25