The balance sheet of Dairy Ltd. appears below: Dairy Ltd. Balance Sheet December 31, 2022 Cash...

  

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The balance sheet of Dairy Ltd. appears below: Dairy Ltd. Balance Sheet December 31, 2022 Cash Accounts Receivables Inventory Net Fixed Assets Total Assets Accruals Accounts Payable Short term debt Long term debt Equity Total liabilities & Equity S'million 15 25 45 130 215 10 25 20 60 100 215 In 2022, Dairy Ltd. had total sales of $150 million. The company's net profit for 2022 was $30 million and $24 million was paid out as dividends. The company is currently operating below full capacity and was considering a 40% increase in sales during 2023. Unfortunately, they are unable to raise the funding that would be required and, as an alternative, management has decided to determine the company's sustainable growth rate and use that as the basis for a proposal to the board of directors. Required: a. Calculate the company's sustainable growth rate and advise the company on the amount of new funding that would be required in order to achieve this level of growth in sales during 2023. (10 marks) b. Assuming that the company is able to raise these funds by way of a long-term loan, prepare the company's forecast balance sheet for the year ended December 31, 2023, (8 marks) O 37 The balance sheet of Dairy Ltd. appears below: Dairy Ltd. Balance Sheet December 31, 2022 Cash Accounts Receivables Inventory Net Fixed Assets Total Assets Accruals Accounts Payable Short term debt Long term debt Equity Total liabilities & Equity S'million 15 25 45 130 215 10 25 20 60 This question will be sent to your instructor for grading. 100 215 in 2022, Dairy Ltd. had total sales of $150 million. The company's net profit for 2022 was $30 million and $24 million was paid out as dividends. The company is currently operating below full capacity and was considering a 40% increase in sales during 2023. Unfortunately, they are unable to raise the funding that would be required and, as an alternative, management has decided to determine the company's sustainable growth rate and use that as the basis for a proposal to the board of directors. Required: a Calculate the company's sustainable growth rate and advise the company on the amount of new funding that would be required in order to achieve this level of growth in sales during 2023. (10 marks) b. Assuming that the company is able to raise these funds by way of a long-term loan, prepare the company's forecast balance sheet for the year ended December 31, 2023. (8 marks) The balance sheet of Dairy Ltd. appears below: Dairy Ltd. Balance Sheet December 31, 2022 Cash Accounts Receivables Inventory Net Fixed Assets Total Assets Accruals Accounts Payable Short term debt Long term debt Equity Total liabilities & Equity S'million 15 25 45 130 215 10 25 20 60 100 215 In 2022, Dairy Ltd. had total sales of $150 million. The company's net profit for 2022 was $30 million and $24 million was paid out as dividends. The company is currently operating below full capacity and was considering a 40% increase in sales during 2023. Unfortunately, they are unable to raise the funding that would be required and, as an alternative, management has decided to determine the company's sustainable growth rate and use that as the basis for a proposal to the board of directors. Required: a. Calculate the company's sustainable growth rate and advise the company on the amount of new funding that would be required in order to achieve this level of growth in sales during 2023. (10 marks) b. Assuming that the company is able to raise these funds by way of a long-term loan, prepare the company's forecast balance sheet for the year ended December 31, 2023, (8 marks) O 37 The balance sheet of Dairy Ltd. appears below: Dairy Ltd. Balance Sheet December 31, 2022 Cash Accounts Receivables Inventory Net Fixed Assets Total Assets Accruals Accounts Payable Short term debt Long term debt Equity Total liabilities & Equity S'million 15 25 45 130 215 10 25 20 60 This question will be sent to your instructor for grading. 100 215 in 2022, Dairy Ltd. had total sales of $150 million. The company's net profit for 2022 was $30 million and $24 million was paid out as dividends. The company is currently operating below full capacity and was considering a 40% increase in sales during 2023. Unfortunately, they are unable to raise the funding that would be required and, as an alternative, management has decided to determine the company's sustainable growth rate and use that as the basis for a proposal to the board of directors. Required: a Calculate the company's sustainable growth rate and advise the company on the amount of new funding that would be required in order to achieve this level of growth in sales during 2023. (10 marks) b. Assuming that the company is able to raise these funds by way of a long-term loan, prepare the company's forecast balance sheet for the year ended December 31, 2023. (8 marks)