1). Suppose that Wind Em Corp. currently has the balance sheet shown below, and that sales for the year just ended were $6.9 million. The firm also has a profit margin of 30 percent, a retention ratio of 20 percent, and expects sales of $7.9 million next year.

Assets Liabilities and Equity

Current assets $1,931,000 Current liabilities. $2,390,850

Fixed assets 4,900,000 Long-term debt 1,550,000

Equity 2,890,150

Total assets $6,831,000 Total liabilities and equity. $6,831,000

If all assets and current liabilities are expected to grow with sales, what amount of additional funds will Wind Em need from external sources to fund the expected growth?(Enter your answer in dollars not in millions.)

Additional Funds Needed?

2). Assume a firm has a cash cycle of 73 days and an operating cycle of 127 days.

What is its payables turnover?(Use 365 days a year. Round your answer to 2 decimal places.)

Payable Turnover ___ Times?

3). Suppose that Wind Em Corp. currently has the balance sheet shown below, and that sales for the year just ended were $7.7 million. The firm also has a profit margin of 20 percent, a retention ratio of 25 percent, and expects sales of $8.7 million next year.

Assets Liabilities and Equity

Current assets $2,539,000 Current liabilities $3,460,380

Fixed assets 5,700,000 Long-term debt 1,850,000

Equity 2,928,620

Total assets $8,239,000 Total liabilities and equity $8,239,000

If all assets and current liabilities are expected to grow with sales, what amount of additional funds will Wind Em need from external sources to fund the expected growth?(Enter your answer in dollars not in millions.)

Additional Funds Needed?

4). Suppose a firm has had the following historic sales figures.

Year: 2012 2013 2014 2015 2016

Sales $2,400,000 $2,650,000 $2,300,000 $2,900,000 $2,500,000

What would be the forecast for next year's sales using the average approach?

Next Year Sales?