Conagra shows sales in of $ with a profit margin and a plowback ratio of the

dividend payout ratio is expected to remain unchanged Accounts payable is currently $

accounts receivable is $ inventory is $ net fixed assets are $ accruals for salary

owed is $ retained earnings is $ debt consists of longterm for $ and short term for

$ Conagra reports cash of $ and common stock of $ First show the income

statement and balance sheet, then forecast both statements given that Conagras sales in are

expected to be $ If additional funds are required, Conagra plans to use the least expensive

funding source first then proceed to more expensive capital. Conagras current debt holders will allow

the firm to have a total liabilities to total assets ratio of no greater than and they must hold their

current ratio to or greater. Find Conagras AFN, solve for the amounts needed from equity andor

debt and if they meet the current ratio requirement, how much more $ in current liabilities they can

absorb and still meet the debt holders current ratio covenant.