Dahlia Colby, CFO of Charming Florist Ltd., has created thefirm’s pro forma balance sheet for the next fiscal year. Sales areprojected to grow by 20 percent to $420 million. Current assets,fixed assets, and short-term debt are 25 percent, 70 percent, and15 percent of sales, respectively. Charming Florist pays out 25percent of its net income in dividends. The company currently has$128 million of long-term debt and $56 million in common stock parvalue. The profit margin is 16 percent.

  

a.

Prepare the current balance sheet for the firm using theprojected sales figure. (Be sure to list the assets andliabilities in order of their liquidity. Enter your answers indollars, not millions of dollars, e.g., 1,234,567. Do not roundintermediate calculations and round your answers to the nearestwhole number, e.g., 32.)

  

Balance Sheet
Assets			Liabilitiesand equity
(Click toselect)Accounts receivableFixed assetsShort-term debtCommonstockLong-term debtCurrent assets	$		(Click toselect)Current assetsAccumulated retained earningsAccountspayableShort-term debtCommon stockLong-term debt	$
(Click toselect)Short-term debtLong-term debtCommon stockFixed assetsCurrentassetsAccounts receivable			(Click toselect)Accumulated retained earningsCurrent assetsAccountspayableCommon stockShort-term debtLong-term debt
			(Click toselect)Accumulated retained earningsCurrent assetsAccountspayableLong-term debtCommon stockShort-term debt	$
			(Click toselect)Accumulated retained earningsAccounts payableShort-termdebtCurrent assetsLong-term debtCommon stock
			Total equity	$
Total assets	$		Total liabilitiesand equity	$

  

b.	Based on Ms. Colby’s sales growth forecast, how much doesCharming Florist need in external funds for the upcoming fiscalyear? (Enter your answer in dollars, not millions ofdollars, e.g., 1,234,567. Do not round intermediate calculationsand round your answer to the nearest whole number, e.g.,32.)

  

External financingneeded

$

  

c-1.

Prepare the firm’s pro forma balance sheet for the next fiscalyear. (Be sure to list the assets and liabilities in orderof their liquidity. Enter your answers in dollars, not millions ofdollars, e.g., 1,234,567. Do not round intermediate calculationsand round your answers to the nearest whole number, e.g.,32.)

  

Balance Sheet
Assets			Liabilitiesand equity
(Click toselect)Long-term debtFixed assetsAccumulated retainedearningsAccounts receivableShort-term debtCurrent assets	$		(Click toselect)Accumulated retained earningsLong-term debtCommonstockShort-term debtCurrent assetsAccounts payable	$
(Click toselect)Current assetsLong-term debtAccumulated retainedearningsShort-term debtAccounts receivableFixed assets			(Click toselect)Current assetsAccumulated retained earningsCommonstockAccounts payableShort-term debtLong-term debt
			(Click toselect)Current assetsAccounts payableShort-term debtCommonstockAccumulated retained earningsLong-term debt	$
			(Click toselect)Accounts payableLong-term debtShort-term debtCommonstockCurrent assetsAccumulated retained earnings
			Total equity	$
Total assets	$		Total liabilitiesand equity	$

  

c-2.	Calculate the external funds needed. (Enter your answerin dollars, not millions of dollars, e.g., 1,234,567. Do not roundintermediate calculations and round your answer to the nearestwhole number, e.g., 32.)

  

External financingneeded

$