Determine the amount of External Financing Needed (EFN) under the pro forma assumptions. Detail how this external financing is distributed.

	LUXIO GOLF CORP.
	Pro Forma
	Statement of comprehensive income
					2009	2010
	Sales				$ 285,760.00	$ 342,912.00
	Cost of goods sold			205,132.00	246,158.40
	Depreciation			21,950.00	21,950.00
	Earnings before interest and tax		$ 58,678.00	$ 74,803.60
	Interest paid			9,875.00	9,875.00
	Taxable income			$ 48,803.00	$ 64,928.60
	Taxes (32%)				17,081.05	20,777.15
	Net Income				$ 31,721.95	$ 44,151.45
	Dividends			56.74%	61.74%
	Additon to retained earnings		$ 18,000.00	$ 27,260.45
					13,721.95	$ 16,891.00
	LUXIO GOLF CORP.
	Assets
				2009	2010
	Current Assets
	Cash			$ 22,150.00	$ 26,580.00
	Accounts receivable		13,865.00	16,638.00
	Inventory			24,876.00	29,851.20
	Total assets		$ 60,891.00	$ 73,069.20
	Fixed assets
	Net plant & equipment		$ 184,735.00	$ 221,682.00
	Total Assets		$ 245,626.00	$ 294,751.20
	Liabilities and owner's equity
	Pro Forma Statement of Financial Position
				2009	2010
	Current Liabilities
	Accounts payable		$ 17,318.00	20,781.60
	Notes payable		10,000.00	10,000.00
	Other			14,451.00	14,451.00
	Total			$ 41,769.00	45,232.60
	Long-term debt		$ 85,000.00	$ 103,401.15
	Owner's equity
	Common stock & paid in		$ 20,000.00	20,000.00
	Retained earnings		98,857	115,748.00
	Total			$ 118,857.00	146,117.45
	Total Liabilities & Owner's		$ 245,626.00	$ 294,751.20

Answer rating: 100% (QA)

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