Question: ( Related to Checkpoint 1 7 . 1 ) ( Discretionary financing needs ) Harrison Electronics, Inc. operates a chain of electrical lighting and fixture

(Related to Checkpoint 17.1)(Discretionary financing needs) Harrison Electronics, Inc. operates a chain of electrical lighting and fixture distribution centers throughout Data table (Related to Checkpoint 17.1)(Discretionary financing needs) Harrison Electronics, Inc. operates a chain of
electrical lighting and fixture distribution centers throughout northern Arizona. The firm is anticipating expansion
of its sales in the coming year as a result of recent population growth trends. The firm's financial analyst has
prepared pro forma balance sheets that reflect three different rates of growth in firm sales for the coming year
and the corresponding non-discretionary sources of financing the firm expects to have available, as follows:
a. What are the firm's discretionary financing needs under each of the three growth scenarios?
b. What potential sources of financing are there for Harrison to fulfill its needs for discretionary financing?
a. The discretionary financing needs for a 10% growth scenario are $.(Round to the nearest dollar.)
The discretionary financing needs for a 20% growth scenario are $ (Round to the nearest dollar.)
The discretionary financing needs for a 40% growth scenario are $ (Round to the nearest dollar.)
b. What potential sources of financing are there for Harrison to fulfill its needs for discretionary financing?
(Select all the choices that apply below.)
A. Common stock.
B. Long-term debt.
C. Notes payable.
D. Retained earnings.
E. Sale of fixed assets. SSole":
C. Mrotess panat10:
III
northern Arizona. The firm is anticipating expansion of its sales in the coming year as a result of recent population growth trends. The firm's financial analyst has prepared
pro forma balance sheets that reflect three different rates of growth in firm sales for the coming year and the corresponding non-discretionary sources of financing the firm
expects to have available, as follows:
a. What are the firm's discretionary financing needs under each of the three growth scenarios?
b. What potential sources of financing are there for Harrison to fulfill its needs for discretionary financing?
a. The discretionary financing needs for a 10% growth scenario are $
(Round to the nearest dollar.)
 (Related to Checkpoint 17.1)(Discretionary financing needs) Harrison Electronics, Inc. operates a

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!