Fill in the blanks Cheryl Colby, CFO of Charming Florist Ltd., has created the f

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Fill in the blanks

Cheryl 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 $480 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 $125 million of long-term debt and $53 million in common stock par value. The profit margin is 15 percent a. Prepare the current balance sheet for the firm using the projected sales figure. (Enter your answers in dollars, not millions of dollars, i.e. 1,234,567. Do not round intermediate calculations and round your answers to the nearest whole dollar amount. (e.g., 32)) Balance Sheet Assets Liabilities and equity Current assets Fixed assets 80,000,000 280,000,000 Short-term debt Long-term debt Common stock Accumulated retained earnings Total equity Total liabilities and equity 40,000,000 125,000,000 53,000,000 142,000,000 195000000 360000000 Total assets 360000000

Explanation / Answer

Sales Balance Sheet-current year 20% 480 Assets Liabilities & Equity Sales = 480/120% = 400 Current Assets $    80,000,000 20% Short term debt $    40,000,000 10% Dividend 20% Fixed Assets $ 280,000,000 70% Long term debt $ 125,000,000 Profit margin 15% retention ratio 80% Common Stock $    53,000,000 Profit(480*15%) $        72,000,000 Accumulated retained earnings $ 142,000,000 Dividend(72000000*20%) $        14,400,000 Current Income $        57,600,000 Total Equity $ 195,000,000 Total assets $ 360,000,000 Total liabilities and equity $ 360,000,000 Retained earnings $     142,000,000 Add-Current Income $        57,600,000 Total Retained Earnings $     199,600,000 Balance Sheet-next year Assets Liabilities & Equity EFN= (OLD Assets-Old Liabilities)*sales Growth - PM*new sales*retention ratio Current Assets $    96,000,000 20% Short term debt $    48,000,000 10% Fixed Assets $ 336,000,000 70% Long term debt $ 131,400,000 (360-165)*20% - 15%*480*80% Common Stock $    53,000,000 -18.6 Million Accumulated retained earnings $ 199,600,000 Total Equity $ 252,600,000 Total assets $ 432,000,000 Total liabilities and equity $ 432,000,000

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