(Financial forecasting)Zapatera Enterprises is evaluating its financing requirements for the coming year.
(Financial forecasting) Zapatera 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 $11.72 million in sales with net income of $1.24 million. The firm anticipates that next year’s sales will reach $15.18 million with net income rising to $2.15 million. Given its present high rate of growth, the firm retains all of its earnings to help defray the cost of new investments.
The firm’s balance sheet for the year just ended is as follows:
Balance Sheet 12/31/2013———- % Sales
Current Assets 2900000——————– 24.744%
Net Fixed Assets 5,600,000—————– 47.78%
Total 8,500,000
Liabilitites and Owners Equity
Accounts Payable 2,500,000 ———–21.331%
Long Term Debt 1,800,00 N/A
Total Liabilitites 4,300,000
Common Stock 1,500,000
Paid -in Capital 1,400,000
Retained Earnings 1,300,000
Common Equity 4,200,000
Total 8,500,000
1. If the 2014 retained earnings are 3,450,000 please complete the pro forma blance sheet below
Current Assets_______
Net Fixed Assets _________
Total __________
Liabilitite s and Owners Equity
Accounts Payable
Long Term Debt
Total Liabilitites
Common Stock_____________-
Paid In Capital________
Retained Earnings __________
Common Equity________
Total__________
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