Assume that Fake Stone, Inc. is operating at full capacity. Also assume that assets, costs, and current
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Assume that Fake Stone, Inc. is operating at full capacity. Also assume that assets, costs, and current liabilities vary directly with sales. The dividend payout ratio is constant. The Company’s sales manager estimates that sales will increase by 12% next year.
a) Prepare a pro-forma balance sheet
b) What are the external financing needs under these assumptions?
Related Book For
Financial Management Theory and Practice
ISBN: 978-0176517304
2nd Canadian edition
Authors: Eugene Brigham, Michael Ehrhardt, Jerome Gessaroli, Richard Nason
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