please pro forma statement and EFN at 88 percent capacity

Part 1.A Tu cepulity Used Capacity = s sales 2014 ABC Limited (ABC) is a boutique men's fashion house. specializing in affordable fashion-forward - Used capacity 88% sales/u separates, with its own production facility. ABC is a growing firm and its financial managers predict that it will need external financing to fuel its growt Wat it will need external financing to fuel its growth. The company's most recent financial statements are provided below. Using the percentage of sales approach, construct Al Pro Forma Balance Sheet based on the following information. How much is ABC's external financial need (EFN)? 88 The company is operating at 100% capacity; The forecasted growth in sales is 18% for 2014; The firm has a dividend policy to pay out 30% of Net Income to its shareholders as cash dividends, and keep the remaining 70% as retained earnings, Year 2013 % of Sales Sales 74,889 100.0% Costs excluding Depreciation 58,413 -78.0% EBITDA 16,476 Depreciation 5,492 -7.3% EBIT 10,984 Interest Expense 306 Pretax Income 10,678 Income Tax (35%) 3,737 Net Income 6,941 % of Sales 16.0% 19.0% 20.0% 55.0% 66.0% Year Cash and Equivalents Accounts Receivable Inventories Total Current Assets PP&E Total Assets Accounts Payable Long-term Debt Total Liabilities Stockholders' Equity Total Liabilities & Equity 2013 11,982 14,229 14,978 41,189 49,427 90,616 11,982 4,500 16,482 74,134 90,616 16.0% Page 4