Based on the forecast how much additional financing is needed? Income StatementAssumption 2014Sale (Turnover)13%422.7Cost of sales40% of sales 169.1Gross profit253.6Operating expenses52% of sales 219.8Interest expenses6% of debt3.4Profit before tax30.5Тах30% of PBT 9.1Profit after tax (net income)21.3DividendsFixed10.9Retained earning10.4Balance SheetAssumption 2014CashPlug5.1Account receivable8% of sales 33.8Inventories14% of sales 59.2Current assets4.9% of sales 20.7Fixed assets30% of sales 126.8Other assets1.8% of sales 7.6Total assets253.2Account payable4.2% of sales 17.8Таx рayable2% of sales 8.5Аccruals3.7% of sales 15.6OverdraftsPlug0.0Current liabilities4.2% of sales 17.8Long-term liabilitiesFixed61.2Other liabilities0.1% of sales 0.4Shareholders' equity132.0Total liabilities and equity253.2

A firm has two sources of finance. One is internal financing and other is external financing.…

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how much additional financing is needed?

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter12: Fainancial Statement Analysis

Section: Chapter Questions

Problem 87PSB

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Question

Based on the forecast how much additional financing is needed?

Income Statement
Assumption 2014
Sale (Turnover)
13%
422.7
Cost of sales
40% of sales 169.1
Gross profit
253.6
Operating expenses
52% of sales 219.8
Interest expenses
6% of debt
3.4
Profit before tax
30.5
Тах
30% of PBT 9.1
Profit after tax (net income)
21.3
Dividends
Fixed
10.9
Retained earning
10.4
Balance Sheet
Assumption 2014
Cash
Plug
5.1
Account receivable
8% of sales 33.8
Inventories
14% of sales 59.2
Current assets
4.9% of sales 20.7
Fixed assets
30% of sales 126.8
Other assets
1.8% of sales 7.6
Total assets
253.2
Account payable
4.2% of sales 17.8
Таx рayable
2% of sales 8.5
Аccruals
3.7% of sales 15.6
Overdrafts
Plug
0.0
Current liabilities
4.2% of sales 17.8
Long-term liabilities
Fixed
61.2
Other liabilities
0.1% of sales 0.4
Shareholders' equity
132.0
Total liabilities and equity
253.2

Leveraging special tenchniques in analyzing historical data to predict future trends. Forecasting covers the methods and types of forecasting and their application to case studies.

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