michaelboho Posts: 1, Reputation: 1 New Member   #1 Feb 22, 2012, 03:01 PM

Help with questions on pro forma balance sheets? Sambonoza Enterprises projects its sales next year to be $3.5million and expects to earn 5.3% of that amount after taxes. The firm is currently in the process of projecting its financing needs and has made the following assumptions (projections): 1. Current assets are equal to 19.4% of sales, and fixed assets remain at their current level of 1.1 million. 2. Common equity is currently $0.73 Million, and the firm pays out half of its after-tax earnings in dividends. 3. The firm has short-term payables and trade credit that normally equals 10.5% percent of sales, and it has no long term debt outstanding What are Sambonoza's financing needs for the coming year? Estimate Sambonoza's financial needs by completing the pro forma balance sheet below (round to the nearest dollar) Sambonoza Enterprises Proforma Balance Sheet Next Year Current Assets _____________?____________ Next Fixed Assets: ___________?____________ Total Assets: ___________?____________ Payables/Trade Credit _______ ?____________ Long-Term Debt: _______?_____________ Total Liabilities: ________?____________ Common Equity ________?____________ Total Liabilities and common equity _____?__________ Sambonoza's total financing requirements for the coming year are ____?______ The descretionary financing needed is: ______?______________

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