3. After studying the Financial Forecast and planning, go through the assumption date given below and calculate how much Discretionary financing will we need in 2021 year? Šuppose this year's sales will total $32 million. Next year, we forecast sales of $50 million. Net income should be 5% of sales. Dividends should be 50% of earnings. If this year's information's are as follows: This year % of $32m Assets Current Assets Fixed Assets Total Assets Liab. and Equity Accounts Payable |Accrued Expenses Notes Payable Long Term Debt Total Liabilities Common Stock Retained Earnings Equity Total Liab. & Equity $8m 25% $16m 50% $24m $4m $4m $1m 12.5% 12.5% ala $6m ala $15m $7m ala $2m $9m $24m

3. After studying the Financial Forecast and planning, go through the assumption date given below and calculate how much Discretionary financing will we need in 2021 year? Šuppose this year's sales will total $32 million. Next year, we forecast sales of $50 million. Net income should be 5% of sales. Dividends should be 50% of earnings. If this year's information's are as follows: This year % of $32m Assets Current Assets Fixed Assets Total Assets Liab. and Equity Accounts Payable |Accrued Expenses Notes Payable Long Term Debt Total Liabilities Common Stock Retained Earnings Equity Total Liab. & Equity $8m 25% $16m 50% $24m $4m $4m $1m 12.5% 12.5% ala $6m ala $15m $7m ala $2m $9m $24m

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter16: Working Capital Policy And Short-term Financing

Section: Chapter Questions

Problem 11P

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