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Corporate Finance Week 3 (Textbook Assignment 2) A Financial Forecasting. Small Motors Inc,

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Question;Corporate Finance;Week 3 (Textbook Assignment 2) (Chp4) Financial ForecastingVersion A;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 4.5 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 assets?;b.;What is;the amount of projected liabilities?;c.;What is;the current equity?;d.;What is;the projected increase in retained earning?;e. How much additional equity financing is required for;next year?

 

Paper#47522 | Written in 18-Jul-2015

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