Dahlia 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 20 percent, 80 percent, and 10 percent of sales, respectively. Charming Florist pays out 25 percent of its net income in dividends. The company currently has $132 million of long-term debt and $60 million in common stock par value. The profit margin is 10 percent.
a. Prepare the current balance sheet for the firm using the projected sales figure.