The firm operated at full capacity in 2002. During 2003, it expects sales to increase by 20 percent and dividends per share to increase to $ 1.10. Use the projected balance sheet method to determine how much outside financing is required; develop the firm€™s pro forma balance sheet and income statement, and use AFN as the balancing term.

Per €“Share Data
Common stock price .....................$ 16.96
Earnings per share (EPS) ................$ 1.60
Dividends per share (DPS)..............$1.04

Transcribed Image Text:

Woods Company: Balance Sheets as of December 31, 2002 (S thousands) S160 40 252 S 452 1.244 1.605 S 80 Accounts Payable Accruals Notes Payable Current Liabilities Long-tem debt Common Stock Retained eamings Total liabilities and equity as 240 Accounts receivable Inventories Current assets Fixed assets S 1,040 3.200 Total Assets S 4,240 S4,240 Woods Company: Income Statement for the Year Ending December 31, 2002 (S thousands) Sales Operating costs Eamings before interest and taxes Interest Eamings before taxes Taxes (40%) Net income S8,000 (7450 S 550 (150) S 400 (160) S 240