Question: South County Fiber Optic projects it will need $100 million in total assets to meet the $130 million sales projection. The pro forma balance sheet

South County Fiber Optic projects it will need $100 million in total assets to meet the $130 million sales projection. The pro forma balance sheet shows accounts payable, $16 million, accrued expenses, $4 million, long-term debt, $20 million, and equity, $65 million. If South County decides to meet discretionary financing needs with 5-year notes, how much will it need to borrow?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

Projected total assets needed 100 million Accounts payable 16 millio... View full answer

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!

In the spring of 2016, the Caswell Publishing Company established a custom publishing business for its business clients. These clients consisted principally of small- to medium-size companies in...

The Long branch Western Wear Company has the following financial statements, which are representative of the company's historical average. Income Statement Sales ..............

1. Based on the forecasts above, use the spreadsheet below to construct a pro forma income statement for Idexo over the next five years. What is the annual growth rate of the firm's net income over...

Article is in order below. Article questions are at the end (last picture). I need all of the questions at the bottom and that last picture answered. Assessing a Company's Future Financial Health...

Assessing a Companys Future Financial Health Assessing the long-term financial health of a company is an important task for management as it formulates goals and strategies and for outsiders as they...

See the University of Maine System Annual Financial Report: Statement of Net Position (Balance Sheet) on page 28; and Statement of Revenues, Expenses & Changes in Net Position (Income Statement) on...

Hello Ruchi, I hope you have been doing good! I have attached the instructions word document and the excel workbook for part 5. This is the continuation from part 4. Please let me know if you have...

1. What are the basic benefits and purposes of developing pro forma statements and a cash budget? What are the pitfalls in the process? How do you think you could avoid these pitfalls? 2. What effect...

hi, I need help doing the quarterly proforma for Comfort Zone, I have attached the case and the excel template for the proforma. Please, make sure to use the information from the case. thank you....

You run a nail salon. Fixed monthly cost is $5,591.00 for rent and utilities, $6,103.00 is spent in salaries and $1,584.00 in insurance. Also every customer requires approximately $3.00 in supplies....

What is the biggest problem associated with financing secured by inventory? How is it addressed in practice?

Describe the intersection of the sphere ( x - 1 ) 2 + y 2 + ( z + 3 ) 2 = 5 with the plane y = 0 by words. Show all images Show all images Show all images done loading

1. Th e research of Mintzberg and others concludes that most managers. (a) Work at a leisurely pace (b) Have blocks of private time for planning (c) Always live with the pressures of performance...

Using college major as the independent variable, perform one-way ANOVAs to test for significant differences in both the math background quiz and the statistics quiz. Request descriptive statistics...

What are the differences between asymmetric- and symmetric-key encryption, and when is each used?

Consider a four-factor factorial experiment where factor A is at a levels, factor B is at b levels, factor C is at c levels, factor D is at d levels, and there are n replicates. Write down the sums...

Some states automatically conform to any Federal tax changes, but others require special legislation to conform. Generally, states do not conform to rate changes because state income tax systems have...

A coffee chain targets customers who prefer organic and fair-trade products. This is an example of:Group of answer choicesPsychographic segmentationGeographic segmentationBehavioral...

Suppose that in April 2019, Nike had EPS of $2.57 and a book value of equity of $6.23 per share. a. Using the average P/E multiple in Table 10.1, estimate Nikes share price. b. What range of share...

CoffeeStop primarily sells coffee. It recently introduced a premium coffee-flavored liquor. Suppose the firm faces a tax rate of 25% and collects the following information. If it plans to finance 11%...

You are an intern with First Bank, and have been asked to develop estimates for yield spreads that would be appropriate for corporate bonds or loans with different maturities and credit ratings. To...

Discuss the application of any principle of Groupthink to your workplace, family, or college life.

Can two contradictory things both be true? Provide at least one example.

Recall a time when you were involved in a group similar to the Bayside City Tire Companya time when a decision had to be made. What were some of the rules that influenced the process of decision...