Question Completion Status: 50 OL 7 Libby's proposal - Finance all capital assets and half of its permanent assets with long-term financing costing. Izzy's proposal - Finance all capital assets and permanent current assets plus half of its temporary current assets with long-term financing. TASK - Calculate the company's earnings after tax for each sister's proposal. Use the template below. Discuss the risks associated with each proposal. TEMPLATE: Libby Izzy Short Term debt Long term debt EBIT Intere Short term Long term TOTAL interest expense EBT Taxes Net Income For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). Arial 3 (12pt) T: c.jpg b.jpg a.jpg 7 UTVInu payouts 2070 QUESTIONS: a) What is the required new funds needed to finance the expansion? b) Prepare a pro-forma balance sheet with any financing adjustment made to long term debt. Use the template below: c) What is the current ratio and total debt-to-assets ratio for each year? TEMPLATE: Pro-forma Balance Sheet (Millions) Assets Liabilities & Shareholder's Equity Cash Accounts Payable Accounts Receivable Accrued Wages Inventory Accrued Taxes Current Assets Current Liabilities Capital Assets Long-term Debt Common Stock Retained Earnings TOTAL Liabilities & Shareholder's Equity TOTAL Assets TT T Arial 3 (12pt) T-:E - E FS Question Completion Status: 50 OL 7 Libby's proposal - Finance all capital assets and half of its permanent assets with long-term financing costing. Izzy's proposal - Finance all capital assets and permanent current assets plus half of its temporary current assets with long-term financing. TASK - Calculate the company's earnings after tax for each sister's proposal. Use the template below. Discuss the risks associated with each proposal. TEMPLATE: Libby Izzy Short Term debt Long term debt EBIT Intere Short term Long term TOTAL interest expense EBT Taxes Net Income For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). Arial 3 (12pt) T: c.jpg b.jpg a.jpg 7 UTVInu payouts 2070 QUESTIONS: a) What is the required new funds needed to finance the expansion? b) Prepare a pro-forma balance sheet with any financing adjustment made to long term debt. Use the template below: c) What is the current ratio and total debt-to-assets ratio for each year? TEMPLATE: Pro-forma Balance Sheet (Millions) Assets Liabilities & Shareholder's Equity Cash Accounts Payable Accounts Receivable Accrued Wages Inventory Accrued Taxes Current Assets Current Liabilities Capital Assets Long-term Debt Common Stock Retained Earnings TOTAL Liabilities & Shareholder's Equity TOTAL Assets TT T Arial 3 (12pt) T-:E - E FS