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Business, 10.03.2020 21:23 serenityharmon1

Zapatera Enterprises is evaluating its financing requirements for the coming year. The firm has only been in business for one year, but its CFO predicts that the firm's operating expenses, current assets, net fixed assets, and current liabilities will remain at their current proportion of sales. Last year Zapatera had $12.42 million in sales with a net income of $1.22 million. The firm anticipates that next year's sales will reach $15.92 million with net income rising to $2.15 million. Given its present high rate of growth, the firm retains all of its earnings to help defray the cost of new investments. The firm's balance sheet for the year just ended is as follows: Current assets $3 millionNet fixed assets $5.6 millionAccounts payable $3.2 millionLong-term debt $1.9 millionCommon stock $1.3 millionPaid-in capital $1.7 millionRetained earnings $500,000Common equity $3.5 millionEstimate Zapatera's financing requirements(that is, total assets) for 2014 and its discretionary financing needs(DFN).

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Zapatera Enterprises is evaluating its financing requirements for the coming year. The firm has only...
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