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Dahlia Colby, CFO of Charming Florist Ltd., has created the firm’s pro forma balance sheet for...

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Finance

Dahlia Colby, CFO of Charming Florist Ltd., has created thefirm’s pro forma balance sheet for the next fiscal year. Sales areprojected to grow by 12 percent to $350 million. Current assets,fixed assets, and short-term debt are 20 percent, 80 percent, and10 percent of sales, respectively. Charming Florist pays out 30percent of its net income in dividends. The company currently has$127 million of long-term debt and $55 million in common stock parvalue. The profit margin is 12 percent.

  

a.

Construct the current balance sheet for the firm using theprojected sales figure. (Do not round intermediatecalculations and enter your answers in dollars, not millions ofdollars, rounded to the nearest whole dollar amount, e.g.,1,234,567.)

  
   


b.

Based on Ms. Colby’s sales growth forecast, how much doesCharming Florist need in external funds for the upcoming fiscalyear?

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