Zieber Corporation Source: Intermediate Financial Management (Brigham & Daves), Chapter 9 Build-a-Model Zieber Corporation's 2012 financial statements are shown below. Forecast Zeiber's 2013 income statement and balance sheets. Use the following assumptions: (1) Sales grow by 6%. (2) The ratios of expenses to sales, depreciation to fixed assets, cash to sales, accounts receivable to sales, and inventories to sales will be the same in 2013 as in 2012. (3) Zeiber will not issue any new stock or new long-term bonds. (4) The interest rate is 9% for short-term debt and 11% for long-term debt. (5) No interest is earned on cash. (6) Dividends grow at an 8% rate. Calculate the additional funds needed (AFN). If new financing is required, assume it will be raised as notes payable. Assume that any new notes payable will be borrowed on the last day of the year, so there will be no additional interest expense for the new notes payable lf surplus funds are available, pay a special dividend Used in the forecast Key Input Data Tax rate Dividend growth rate S-T rd L-T rd 40% 8% 3% 11% December 31 Income Statements: in thousands of dollars 2012 Ratios Forecasting basis Growth % of sales Inputs 6.00% 85.00% 2013 Forecast $482,45 $410,09 Sales Expenses (excluding depr. & amort.) $455,150 $386,878 85.000% $68,273 $14,565 % of fixed assets $53,708 $11,880 Interest rate x beginning of year debt $41,828 $16,731 $25,097 $12,554 $72,369 $15,430 $56,930 $13,187 $43,743 $17,735 $26,602 $13,558 $0 $13,044 EBITDA Depreciation and Amortization 8.000% 8.00% EBIT Net Interest Expense EBT Taxes (40%) Net Income Common dividends (regular dividends) Special dividends Addition to retained earnings (DRE) Growth 8.00% $12,543