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Business, 30.03.2020 19:23 harleycrider2251

Dahlia 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 20 percent to $420 million. Current assets, fixed assets, and short-term debt are 20 percent, 70 percent, and 10 percent of sales, respectively. Charming Florist pays out 20 percent of its net income in dividends. The company currently has $129 million of long-term debt and $57 million in common stock par value. The profit margin is 14 percent.

a. Prepare the current balance sheet for the firm using the projected sales figure.
b. Based on Ms. Colby's sales growth forecast, how much does Charming Florist need in external funds for the upcoming fiscal year?

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