Problem $3-9$ External Funds Needed

Dohlo Colby, CFO of Chsming Florlat Umited, has crested the firm's pro forms boince

sheet for the next fircs yeoc Soles sre projected to grow by $10$ percent to $$440$ million.

Current wasts, fixed ssvets, and shortserm debt ore $20$ percent, $80$ percent, and $10$

percent of ssiec, resoectlvely. Charming Flarkt poy: out $20$ percent of its net income in

dividend: The compony currenty hes $$136$ milion of longuterm debt snd $$64$ million in

common stock porvolue. The protis margin is $9$ percent.

a$.$ Construct the current bolince sheet for the firm using the projected ssles figure. IDo

not round intermediate calculations and enter your snswers in dollars, not millions

of dollork, rounded to the nearest whole number, e$.$g$.,1,234,567.$

b$.$ Bssed on Ms$.$ Colby's ssies growth forecsst, how much does Cherming Florist need in

external funds for the upcoming fiscs yes? $($Do not round Intermediote colculations

and enter your answer In dollers, not millions of dollors, rounded to the nearest

whole number, e$.$g$.,1,234,567.)$

Exomal financing neatod

c$-1.$ Conatruct the firmis pro forms bs ance sheet for the next fiscsl yesc. $($Do not round

Intermediate colculations and enter your enswers in dollars, not milions of

dollors, founded to the nearest whole numbert, eg$.,1,234,567.)$

c$-2$ Csculste the externsi funds needed. $($Do not round intermedlete celculetions and

enter your onswer in dollars, not millions of dollars, rounded to the neorest whole

number, e$\mathrm{.}9.1,234\mathrm{.}567)$