Harrison Electronics, Inc. operates a chain of electrical lighting and fixture distribution centers throughout northem Arizona....

 

 

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Harrison Electronics, Inc. operates a chain of electrical lighting and fixture distribution centers throughout northem 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: D. 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 fulfil its needs for discretionary financing? a. The discretionary financing needs for a 10% gronth scenario are S (Round to the nearest dollar.) Harrison Electronics, Inc. Pro Forma Balance Sheet for 2014 Alternative Growth Rates Calculation 10% 20% 40% Current assets $13,250,000 $14,340,000 $16,810,000 Net fixed assets $19,830,000 $21,530,000 $25,260,000 Total $33,080,000 $35,870,000 $42,070,000 Accounts payable $2,230,000 $2,320,000 $2,740,000 Accrued expenses 2,160,000 2,370,000 2,850,000 Notes payable No change 1,440,000 1,440,000 1,440,000 Current liabilities $5,830,000 $6,130,000 $7,030,000 Long-term debt No change 6,510,000 6,510,000 6,510,000 Total liabilities $12,340,000 $12,640,000 $13,540,000 Common stock (par) No change $930,000 $930,000 $930,000 Paid-in capital No change 2,000,000 2,000,000 2,000,000 Retained earnings 15,530,000 15,630,000 15,770,000 Common equity $18,460,000 $18,560,000 $18,700,000 Projected sources of financing $30,800,000 $31,200,000 $32,240,000 Discretionary financing needs Total financing needs = Total assets Harrison Electronics, Inc. operates a chain of electrical lighting and fixture distribution centers throughout northem 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: D. 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 fulfil its needs for discretionary financing? a. The discretionary financing needs for a 10% gronth scenario are S (Round to the nearest dollar.) Harrison Electronics, Inc. Pro Forma Balance Sheet for 2014 Alternative Growth Rates Calculation 10% 20% 40% Current assets $13,250,000 $14,340,000 $16,810,000 Net fixed assets $19,830,000 $21,530,000 $25,260,000 Total $33,080,000 $35,870,000 $42,070,000 Accounts payable $2,230,000 $2,320,000 $2,740,000 Accrued expenses 2,160,000 2,370,000 2,850,000 Notes payable No change 1,440,000 1,440,000 1,440,000 Current liabilities $5,830,000 $6,130,000 $7,030,000 Long-term debt No change 6,510,000 6,510,000 6,510,000 Total liabilities $12,340,000 $12,640,000 $13,540,000 Common stock (par) No change $930,000 $930,000 $930,000 Paid-in capital No change 2,000,000 2,000,000 2,000,000 Retained earnings 15,530,000 15,630,000 15,770,000 Common equity $18,460,000 $18,560,000 $18,700,000 Projected sources of financing $30,800,000 $31,200,000 $32,240,000 Discretionary financing needs Total financing needs = Total assets Harrison Electronics, Inc. operates a chain of electrical lighting and fixture distribution centers throughout northem 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: D. 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 fulfil its needs for discretionary financing? a. The discretionary financing needs for a 10% gronth scenario are S (Round to the nearest dollar.) Harrison Electronics, Inc. Pro Forma Balance Sheet for 2014 Alternative Growth Rates Calculation 10% 20% 40% Current assets $13,250,000 $14,340,000 $16,810,000 Net fixed assets $19,830,000 $21,530,000 $25,260,000 Total $33,080,000 $35,870,000 $42,070,000 Accounts payable $2,230,000 $2,320,000 $2,740,000 Accrued expenses 2,160,000 2,370,000 2,850,000 Notes payable No change 1,440,000 1,440,000 1,440,000 Current liabilities $5,830,000 $6,130,000 $7,030,000 Long-term debt No change 6,510,000 6,510,000 6,510,000 Total liabilities $12,340,000 $12,640,000 $13,540,000 Common stock (par) No change $930,000 $930,000 $930,000 Paid-in capital No change 2,000,000 2,000,000 2,000,000 Retained earnings 15,530,000 15,630,000 15,770,000 Common equity $18,460,000 $18,560,000 $18,700,000 Projected sources of financing $30,800,000 $31,200,000 $32,240,000 Discretionary financing needs Total financing needs = Total assets Harrison Electronics, Inc. operates a chain of electrical lighting and fixture distribution centers throughout northem 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: D. 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 fulfil its needs for discretionary financing? a. The discretionary financing needs for a 10% gronth scenario are S (Round to the nearest dollar.) Harrison Electronics, Inc. Pro Forma Balance Sheet for 2014 Alternative Growth Rates Calculation 10% 20% 40% Current assets $13,250,000 $14,340,000 $16,810,000 Net fixed assets $19,830,000 $21,530,000 $25,260,000 Total $33,080,000 $35,870,000 $42,070,000 Accounts payable $2,230,000 $2,320,000 $2,740,000 Accrued expenses 2,160,000 2,370,000 2,850,000 Notes payable No change 1,440,000 1,440,000 1,440,000 Current liabilities $5,830,000 $6,130,000 $7,030,000 Long-term debt No change 6,510,000 6,510,000 6,510,000 Total liabilities $12,340,000 $12,640,000 $13,540,000 Common stock (par) No change $930,000 $930,000 $930,000 Paid-in capital No change 2,000,000 2,000,000 2,000,000 Retained earnings 15,530,000 15,630,000 15,770,000 Common equity $18,460,000 $18,560,000 $18,700,000 Projected sources of financing $30,800,000 $31,200,000 $32,240,000 Discretionary financing needs Total financing needs = Total assets Harrison Electronics, Inc. operates a chain of electrical lighting and fixture distribution centers throughout northem 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: D. 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 fulfil its needs for discretionary financing? a. The discretionary financing needs for a 10% gronth scenario are S (Round to the nearest dollar.) Harrison Electronics, Inc. Pro Forma Balance Sheet for 2014 Alternative Growth Rates Calculation 10% 20% 40% Current assets $13,250,000 $14,340,000 $16,810,000 Net fixed assets $19,830,000 $21,530,000 $25,260,000 Total $33,080,000 $35,870,000 $42,070,000 Accounts payable $2,230,000 $2,320,000 $2,740,000 Accrued expenses 2,160,000 2,370,000 2,850,000 Notes payable No change 1,440,000 1,440,000 1,440,000 Current liabilities $5,830,000 $6,130,000 $7,030,000 Long-term debt No change 6,510,000 6,510,000 6,510,000 Total liabilities $12,340,000 $12,640,000 $13,540,000 Common stock (par) No change $930,000 $930,000 $930,000 Paid-in capital No change 2,000,000 2,000,000 2,000,000 Retained earnings 15,530,000 15,630,000 15,770,000 Common equity $18,460,000 $18,560,000 $18,700,000 Projected sources of financing $30,800,000 $31,200,000 $32,240,000 Discretionary financing needs Total financing needs = Total assets Harrison Electronics, Inc. operates a chain of electrical lighting and fixture distribution centers throughout northem 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: D. 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 fulfil its needs for discretionary financing? a. The discretionary financing needs for a 10% gronth scenario are S (Round to the nearest dollar.) Harrison Electronics, Inc. Pro Forma Balance Sheet for 2014 Alternative Growth Rates Calculation 10% 20% 40% Current assets $13,250,000 $14,340,000 $16,810,000 Net fixed assets $19,830,000 $21,530,000 $25,260,000 Total $33,080,000 $35,870,000 $42,070,000 Accounts payable $2,230,000 $2,320,000 $2,740,000 Accrued expenses 2,160,000 2,370,000 2,850,000 Notes payable No change 1,440,000 1,440,000 1,440,000 Current liabilities $5,830,000 $6,130,000 $7,030,000 Long-term debt No change 6,510,000 6,510,000 6,510,000 Total liabilities $12,340,000 $12,640,000 $13,540,000 Common stock (par) No change $930,000 $930,000 $930,000 Paid-in capital No change 2,000,000 2,000,000 2,000,000 Retained earnings 15,530,000 15,630,000 15,770,000 Common equity $18,460,000 $18,560,000 $18,700,000 Projected sources of financing $30,800,000 $31,200,000 $32,240,000 Discretionary financing needs Total financing needs = Total assets

Answer rating: 100% (QA)

Discretionary Financing Needs DFN Total Financing Needs less Projected Source... View the full answer