A corporation established its projected sales at $210 million. It is using its current year balance sheet
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A corporation established its projected sales at $210 million. It is using its current year balance sheet as a basis for creating a pro forma balance sheet. It estimates cash will be 7% of projected sales, accounts receivable will be 19% of projected sales, and property plant and equipment (PP&E) will be 55% of projected sales. Accounts payable are estimated to be 12% or projected sales. Owners equity is $34 million. Long term debt is $90 million. Additionally, the firm raised $12.9 million of equity capital.
What is the amount of discretionary financing needed?
Related Book For
Fundamentals Of Corporate Finance
ISBN: 9780135811603
5th Edition
Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford
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