Given the financial statements below for Firefly Enterprises, what is the external financing need for a...

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Finance

Given the financial statements below for Firefly Enterprises,what is the external financing need for a pro forma increase insales of 11%? Enter your answer as the nearest whole (e.g., 123),but do not include the $ sign.

Firefly Enterprises
Income Statement ($ Million)
2011
Sales
740
Cost of Goods Sold
452
Selling, General, & Admin Exp.
124
Depreciation
40
Earnings Before Interest & Taxes
124
Interest Expense
24
Taxable Income
100
Taxes at 40%
40
Net Income
60
Dividends
18
Addition to Retained Earnings
42
Balance Sheets as of 12-31
Assets
2010
2011
Cash
20
20
Account Receivable
102
110
Inventory
76
80
Total Current Assets
198
210
Net Fixed Assets
352
410
Total Assets
550
620
Liabilities and Owners Equity
2010
2011
Accounts Payable
62
70
Notes Payable
0
0
Total Current Liabilities
62
70
Long-Term Debt
280
300
Common Stock
34
34
Retained Earnings
174
216
Total Liab. and Owners Equity
550
620

Answer & Explanation Solved by verified expert

3.7 Ratings (388 Votes)

A Proforma income statement Sales increase 11 Sales 740 11 82140 Less Cost of goods sold 452 11 50172 Selling administration expenses 124 11 13764 Depriciation same 40 Earnings before interest tax 14204 Interest same 24 See Answer

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Transcribed Image Text

Given the financial statements below for Firefly Enterprises,what is the external financing need for a pro forma increase insales of 11%? Enter your answer as the nearest whole (e.g., 123),but do not include the $ sign. Firefly EnterprisesIncome Statement ($ Million)2011Sales740Cost of Goods Sold452Selling, General, & Admin Exp.124Depreciation40Earnings Before Interest & Taxes124Interest Expense24Taxable Income100Taxes at 40%40Net Income60Dividends18Addition to Retained Earnings42Balance Sheets as of 12-31Assets20102011Cash2020Account Receivable102110Inventory7680Total Current Assets198210Net Fixed Assets352410Total Assets550620Liabilities and Owners Equity20102011Accounts Payable6270Notes Payable00Total Current Liabilities6270Long-Term Debt280300Common Stock3434Retained Earnings174216Total Liab. and Owners Equity550620

Firefly Enterprises
Income Statement ($ Million)		2011

Sales		740
Cost of Goods Sold		452
Selling, General, & Admin Exp.		124
Depreciation		40
Earnings Before Interest & Taxes		124
Interest Expense		24
Taxable Income		100
Taxes at 40%		40
Net Income		60
Dividends		18
Addition to Retained Earnings		42

Balance Sheets as of 12-31
Assets	2010	2011
Cash	20	20
Account Receivable	102	110
Inventory	76	80
Total Current Assets	198	210
Net Fixed Assets	352	410
Total Assets	550	620

Liabilities and Owners Equity	2010	2011
Accounts Payable	62	70
Notes Payable	0	0
Total Current Liabilities	62	70
Long-Term Debt	280	300
Common Stock	34	34
Retained Earnings	174	216
Total Liab. and Owners Equity	550	620