Question $18$

$6$ Points

Question $18$

Last$$year$,$ Lombardi Corporation had sales of $$400$ and ended the year with the balance sheet below.$$For this year, management forecasts sales of $$480,$ net income of $$24,$ and dividends of $$12.$Long$-$term debt and$$common stock$$are discretionary; the remaining accounts are spontaneous.$$Forecast Lombardi$$s external financing needed $($EFN$)$ for this year using the percentage$-$of$-$sales method.

Cash

$$$$40$

Accounts payable

$$60$

Accounts receivable

$100$

Long$-$term debt

$200$

Inventories

$120$

Common stock

$120$

Plant and equipment

$240$

Retained earnings

$120$

$$TOTAL ASSETS

$$$ $500$

$$TOTAL LIAB & EQUITY

$$500$

$$64.$

$$76.$

$$36.$

$$12.$