4 Finance questions for pavan 1001
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Pt7-l (similar to).
(Financial forecasting) Zapatwa Enterprises is evaluating its financing requirements for the coming year. The firm has only been in business for one year, but its CFO predicts that the firm's operating expenses, current assets, net fixed assets, and current liabilities will remain at their current proportion of sales. Last year Zapatera had $11.74 million in sales with net income of $1.19 million. The firrn anticipates that next year's sales will reach $15.09 million with net income rising to $2.03 million. Given its present high rate of growth, the firm retains all of its earnings to help defray the cost of new investnents.
The firm's balance sheet for the year just ended is as followr, i,F.. Estimate Zapatera's total financing requirements (total assets) and its net funding requirements (discretionary financingneeded) for 2014. Nafe: Use the percentage of sales given in Zapatera Enterprises' balance sheet for 201 3.
Tlne 2}t4retaired earnings are $[. (Round to the nearest dollar.)
Complete the pro forma balance sheet for 2014 below: (Round to the nearest dollar.)
ZapateraEnterprises, Inc.
Pro forma Balance Sheet tztSutt
Net fixed assets
Total
Liabilities and Owners' Equity
Accounts payable
Long*term debt
Total liabilities
Common stock
Paid-in capital
Retained earnings
Common equlty
Total $ ! I
Zapatera'stotal financing requirements (total assets) for 2014*" $[. (Round to the nearest dollar.)
Zapateta'snet frmding requirements (discretionary financing needed) for 2Ol4*. $I. (Round to the nearest dollar.)
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