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Liberty University BUSI320 Corporate Finance Week 3 (Textbook Assignment 2) (Chp4) Financial Forecasting

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Liberty University BUSI320 Corporate Finance;Week 3 (Textbook Assignment 2) (Chp4) Financial Forecasting;Financial Forecasting. Small Motors Inc, which is currently operating at full capacity, has sales of $29,000, current assets of $1,600, current liabilities of $1,200, net fixed assets of $27,500, and a 5 percent profit margin. The firm has no long-term debt and does not plan on acquiring any. The firm does not pay any dividends. Sales are expected to increase by 6.5 percent next year. If all assets, short-term liabilities, and costs vary directly with sales, answer the following questions? Hint: (Additional Financing Required = Projected assets ?projected liabilities-current equity-projected increase in retained earnings);a. What is the amount of projected total assets?;b. What is the amount of projected total liabilities?;c. What is the current equity?;d. What is the projected increase in retained earnings?;e. How much additional equity financing is projected to be required for next year?

 

Paper#24975 | Written in 18-Jul-2015

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