Zapatera Enterprises is evaluating its financing requirements for the coming year. The firm has been in business for only 1 year, but its CFO predicts that the firm’s operating expenses, current assets, net fixed assets, and current liabilities will remain at their current proportion of sales. Last year Zapatera had $ 12 million in sales, and net income of $ 1.2 million. The firm anticipates that next year’s sales will reach $ 15 million, with net income rising to $ 2 million. Given its present high rate of growth, the firm retains all its earnings to help defray the cost of new investments. The firm’s balance sheet for 2013 is found below:

  • CreatedSeptember 11, 2015
  • Files Included
Post your question