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  • (Solved) Dahlia Colby, CFO of Charming Florist LTD., Has Created The Firm's... - Course Hero

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    Dahlia Colby has created a pro forma balance sheet for Charming Florist Ltd. for the next fiscal year. Sales are projected to grow 12% to $350 million. Current assets are 20% of sales, fixed assets are 80% of sales, and short-term debt is 10% of sales. The company pays out 30% of net income as dividends and has $127 million in long-term debt and $55 million in common stock. The profit margin is 12%. The assistant provides the current balance sheet and calculates the external funds needed for the upcoming year.

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    [Solved] Dahlia Colby, CFO of Charming Florist Ltd., has created the firm's... _ Course Hero

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    Dahlia Colby has created a pro forma balance sheet for Charming Florist Ltd. for the next fiscal year. Sales are projected to grow 12% to $350 million. Current assets are 20% of sales, fixed assets are 80% of sales, and short-term debt is 10% of sales. The company pays out 30% of net income as dividends and has $127 million in long-term debt and $55 million in common stock. The profit margin is 12%. The assistant provides the current balance sheet and calculates the external funds needed for the upcoming year.

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    18 views3 pages

    (Solved) Dahlia Colby, CFO of Charming Florist LTD., Has Created The Firm's... - Course Hero

    Uploaded by

    misonim.e
    Dahlia Colby has created a pro forma balance sheet for Charming Florist Ltd. for the next fiscal year. Sales are projected to grow 12% to $350 million. Current assets are 20% of sales, fixed assets are 80% of sales, and short-term debt is 10% of sales. The company pays out 30% of net income as dividends and has $127 million in long-term debt and $55 million in common stock. The profit margin is 12%. The assistant provides the current balance sheet and calculates the external funds needed for the upcoming year.

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    © All Rights Reserved
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    Lindenwood University • FIN • FIN-52010 • Dahlia Colby, CFO of Charming Florist Ltd.,

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    Dahlia Colby, CFO of Charming Florist Ltd., has created the firm's... Get solutions in as few as
    30 minutes.
    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 12
    Enter a question
    percent to $350 million. Current assets, fixed assets, and short-term debt are
    20 percent, 80 percent, and 10 percent of sales, respectively. Charming Florist
    pays out 30 percent of its net income in dividends. The company currently has
    $127 million of long-term debt and $55 million in common stock par value. The
    profit margin is 12 percent. Ask a
    a. Prepare the current balance sheet for the firm using the projected sales question
    figure.
    b. Based on Ms. Colby's sales growth forecast, how much does Charming
    Florist need in external funds for the upcoming fiscal year?
    c-1. Prepare the firm's pro forma balance sheet for the next fiscal year.
    c-2. Calculate the external funds needed.

    BUSINESS FINANCE FIN 52010

    Comments (2)

    Answer & Explanation Solved by verified expert

    Answered by ProfRondon

    Please check those figures in the explanation. Regards.

    Step-by-step explanation

    Image transcription text


    Sales Cu rre nt assets Fixed assets Sh
    art—te rm d e ht Divi d e n d s Lang—te
    rm
    debt Cam m an stack Prafit margin
    Projected Retained Earnings Retained
    Earning
    Opening {Eunen t} Projected prafit
    Dividend payment Projected Retaine...
    Show more
    Image transcription text
    Balance Sheet [Eu rrent] Assets Current
    Assets Fixed Assets Total Assets
    Liabilities
    Short—term debt Long-te rm debt Elli—it!
    Common stock Retained Earning Total
    Liabilities and Eduit'yr $ 31.2so.ooo,oo S
    12?.Dflflflflflfifl s ss.ooo.ooo,oo ...
    Show more

    Comments (1)

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