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Question 1 115 marks: Long-term Financial Planning & Growth (Chapter 4) This is a modified version of Chapter 4 Mori Cose in the textbook / CAN edition page 144). Tuxedo Air had historically used little planning for investment needs. As a result, the company experienced some challenging times because of cash flow problems. The lack of planning resulted in missed sales, as well as periods where the company's founder-owners were unable to draw salaries. To this end, they would like you to prepare a financial plan for the next year so the company can address any outside investment requirements. The company's 2015 Statement of Comprehensive Income (Income Statement) and Statement of Financial Position (Balance Sheet) are shown as in the textbook Question Lal Tuxedo Air is planning for a growth rate of 12% next year. Prepare Tuxedo Air's Pro Forma Statement of Comprehensive Income and its Pro Forma Statement of Financial Position Calculate the external financing nooded (EFN) for the company in 2016, based on these assumptions: (a) it is operating at full capacity. (b) interest charges stay constant, (c) dividend payout ratio is 30%, and the remaining 70% of income will be added to retained camnings Question 1.b Given the above calculation, identify which "plug" variables the company could consider in addressing the EFN, and the pros and cons of using each variable Question 1. Calculate the internal growth rate and sustainable growth rate for Tuxedo Air Discuss the meaning and economic implication of these numbers. Q 0 comments Activity @ Type a comment .ROGERS 2:03 AM 7 100%

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