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 15 percent to $460 million. Current assets, fixed assets, and short-term debt are 15 percent, 70 percent, and 5 percent of sales, respectively. The company pays out 25 percent of its net income in dividends. The company currently has $130 million of long-term debt, and $58 million in common stock par value. The profit margin is 12 percent.
a. Prepare the current balance sheet for the firm using the projected sales figure. (Do not round intermediate calculations. Enter your answers in dollars, not millions of dollars, e.g. 1,234,567.)
b. Based on the sales growth forecast, how much does the company need in external funds for the upcoming fiscal year? (Do not round intermediate calculations. Enter your answer in dollars, not millions of dollars, e.g. 1,234,567.)
c-1. Prepare the firm’s pro forma balance sheet for the next fiscal year. (Do not round intermediate calculations. Enter your answers in dollars, not millions of dollars, e.g. 1,234,567.)
c-2. Calculate the external funds needed. (Do not round intermediate calculations. Enter your answer in dollars, not millions of dollars, e.g. 1,234,567.)