Cheryl Colby, CFO of Charming Florist Ltd

Finance Jul 01, 2021

Cheryl Colby, CFO of Charming Florist Ltd., has created the firmAc€?cs 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.

1.) Prepare the current balance sheet for the firm using the projected sales figure. (Enter your answers in dollars, not millions of dollars, e.g. 1,234,567. Do not round intermediate calculations.)

2.) Based on Ms. ColbyAc€?cs sales growth forecast, how much does Charming Florist need in external funds for the upcoming fiscal year? (Enter your answer in dollars, not millions of dollars, e.g. 1,234,567. Do not round intermediate calculations.)

3.) Prepare the firmAc€?cs pro forma balance sheet for the next fiscal year. (Enter your answers in dollars, not millions of dollars, e.g. 1,234,567. Do not round intermediate calculations.)

4.)Calculate the external funds needed. (Enter your answer in dollars, not millions of dollars, e.g. 1,234,567. Do not round intermediate calculations.)