Table Caswell( Balance sheet 2013) Cashwell (Proforma balance sheet 2014 , 100% Current assets $ 11,900,00 Current assets $ 23,800,000 Net fixed
Table
Caswell( Balance sheet 2013) Cashwell (Proforma balance sheet 2014 , 100%
Current assets $ 11,900,00 Current assets $ 23,800,000
Net fixed assets 18,110,000 Net fixed assets 36,220,000
Total 30,010,000 Total 60,020,000
Accounts payable 2,010,00 Accounts payable 4,020,000
Accrued expenses 1,980,000 Accrued expenses 3,960,000
Notes Payable 1,510,000 Notes Payable 1,510,000
Current Liabilities 5,500,000 Current Liabilities 9,490,000
Long term debt 6,480,000 Long term debt 6,480,000
Total liabilities 11,980,000 Total liabilities 15,970,000
Common stock ( par) 900,000 Common stock ( par) 900000
Paid in capital 2,100,000 Paid in capital 2,100,000
Retained earnings 15,030,000 Retained earnings 15,030,000
Common Equity 18,030,000 Common Equity 18,030,000
Total 30,010,000 Projected sources of financing 34,000,000
Discretionary financing needs …………
Total financing needs= Total assets …….
In the spring of 2013 the Caswell publish company established a customer publish business for its business clients. These clients consisted principally of small to medium size companies in round rock Texas. However, the company plan were disrupted when they landed a large printing contract from Dell computers Corp ( Dell) that they expected would run for several years. Specially the new contract would increase firm revenues by 100%. Consequently Caswell management knew they would need to make some significant changes in firm capacity and quickly. The following balance sheet for 2013 and pro forma balance sheet for 2014 reflect the firm estimates of the financial impact of the 100% revenue growth.
a) how much new discretionary financing will caswell require based on the above estimates.
b) Given the nature of the new contract and the specific needs for financing that the firm expect, what recommendations might you offer to the firm CFO as to specific sources of financing the firm should to fulfill its DFN?
a) The discretionary financing needs are $ ( round nearest dollar)
b) Given the nature of the new contract and the specific needs for financing that the firm expects, what recommendations might you offer to the firm chief financial officer as to specific sources of financing the firm should seek to fulfill its DFN? ( select all the choices that apply below)
a) Retained earnings
b) Long term-debt
c)Sale of fixed assets
d) Notes payable
e) common stock
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