Oblems Use the percentage of sales forecasting method to compute the additional financing needed by Lambrechts Specialty Shops, Inc. (LSS), if sales are expected to increase from a current level of $20 million to a new level of $25 million over the coming year. LSS expects earnings after taxes to equal $1 million over the next year. LSS intends to pay a $300,000 dividend next year. The current year balance sheet for LSS is as follows:
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- Self-Test Problems: 1. Use the percentage of sales forecasting method to compute the additional financing needed by Lambrechts Specialty Shops, Inc. (LSS), if sales are expected to increase from a current level of $20 million to a new level of $25 million over the coming year. LSS expects earnings after taxes to equal $1 million over the next year. LSS intends to pay a $300,000 dividend next year. The current year balance sheet for LSS is as follows: Lambrechts Specialty Shops, Inc. 138 Balance Sheet as of December 31, 20X3 cash $1,000,000 Accounts payable $3,000,000 Accounts receivable 1,500,000 Notes payable 3,000,000 inventories 6,000,000 Long-term debt 2,000,000 Net fixed assets 3,000,000 Stockholders' equity 3,500,00 Total Assets $11,500,000 Total liabilities and equity $11,500,000 All assets, except "cash", are expected to vary proportionately with sales. Of total liabilities and equity, only “accounts payable" is expected to vary proportionately with sales.Use the percentage of sales forecasting method to compute the additional financing needed by Lambrechts Specialty Shops, Inc. (LSS), if sales are expected to increase from a current level of $20 million to a new level of $25 million over the coming year. LSS expects earnings after taxes to equal $1 million over the next year. LSS intends to pay a $300,000 dividend next year. The current year balance sheet for LSS is as follows: Lambrechts Specialty Shops, Inc. Balance Sheet as of December 31, 20X3 Cash $1,000,000 Accounts payable $3,000,000 Accounts receivable 1,500,000 Notes payable 3,000,000 inventories 6,000,000 Long-term debt 2,000,000 Net fixed assets 3,000,000 Stockholders’ equity 3,500,000 Total Assets $11,500,000 Total…Use the percentage of sales forecasting method to compute the additional financing needed by Lambrechts Specialty Shops, Inc. (LSS), if sales are expected to increase from a current level of $20 million to a new level of $25 million over the coming year. LSS expects earnings after taxes to equal $1 million over the next year. LSS intends to pay a $300,000 dividend next year. The current year balance sheet for LSS is as follows: Lambrechts Specialty Shops, Inc. Balance Sheet as of December 31, 20X3 Cash $1,000,000 Accounts Payable $3,000,000 Accounts Receivable 1,500,000 Notes Payable 3,000,000 Inventories 6,000,000 Long-Term Debt 2,000,000 Net Fixed Assets 3,000,000 Stockholders’ Equity 3,500,00 Total Assets $11,500,000 Total Liabilities and Equity $11,500,000
- Good day! Can you please help me with this? Thank you!! Financial Forecasting SOLVE THE FOLLOWING PROBLEM: Use the percentage of sales forecasting method to compute the additional financing needed by LSS Inc., if sales are expected to increase from a current level of P 20,000,000 to a new level of Php 25,000,000 over the coming year. LSS expects earnings after taxes to equal Php 1,000,000 over the next year (2018). LSS intends to pay a Php 300,000 dividend next year. The current year balance sheet for LSS is as follows: LSS INC. Balance Sheet as of December 31, 1018 Cash 1,000,000c. Additional financing needed Accounts Payable 3,000,000Accounts Receivable 1,500,000 Notes Payable 3,000,000Inventories 6,000,000 Long term Debt 2,000,000Net Fixed Assets 3,000,000 Stockholder’s Equity 3,500,000TOTAL ASSETS 11,500,000 TOTAL LIABILITIES &EQUITY 11,500,000 All assets except “cash are expected to vary proportionately with sales. Of total liabilities and equity, only “accounts payable” is…1. Use the percentage of sales forecasting method to compute the additional financing needed by Lambrechts Specialty Shops, Inc. (LSS), if sales are expected to increase from a current level of $20 million to a new level of $25 million over the coming year. LSS expects earnings after taxes to equal $1 million over the next year. LSS intends to pay a $300,000 dividend next year. The current year balance sheet for LSS is as follows:(Forecasting financing needs) Beason Manufacturing forecasts its sales next year to be $5.4 million and expects to earn 4.9 percent of that amount after taxes. The firm is currently in the process of projecting its financing needs and has made the following assumptions (projections): • Current assets are equal to 19.8 percent of sales, and fixed assets remain at their current level of $0.8 million. • Common equity is currently $0.78 million, and the firm pays out half of its after-tax earnings in dividends. The firm has short-term payables and trade credit that normally equal 11.8 percent of sales, and it has no long-term debt outstanding. What are Beason's financing needs for the coming year? Beason's expected net income for next year is $ (Round to the nearest dollar.)
- Use the "percent of sales method" of preparing pro forma financial statements to determine the projection for next year's accounts receivable. Make the following assumptions: current year's sales are $55,750,000; current year's cost of goods sold is $25,350,000; sales are expected to rise by 25%, The firm's investment in accounts receivable in the current year is $12,600,000. The firm's marginal tax rate is 35%. What is the projection for next year's accounts receivable? $10,320,000 $11,345,000 O $15,750,000 $8,772,000(Forecasting financing needs) Beason Manufacturing forecasts its sales next year to be $5.6 million and expects to earn 4.3 percent of that amount after taxes. The firm is currently in the process of projecting its financing needs and has made the following assumptions (projections): • Current assets are equal to 19.3 percent of sales, and fixed assets remain at their current level of $1.1 million. • Common equity is currently $0.75 million, and the firm pays out half of its after-tax earnings in dividends. • The firm has short-term payables and trade credit that normally equal 12.1 percent of sales, and it has no long-term debt outstanding. What are Beason's financing needs for the coming year? Beason's expected net income for next year is $ 240,800 (Round to the nearest dollar.) Beason's expected common equity balance for next year is $ 870400. (Round to the nearest dollar.) Estimate Beason's financing needs by completing the pro forma balance sheet below: (Round to the nearest…(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 $12.39 million in sales with net income of $1.22 million. The firm anticipates that next year's sales will reach $15.54 million with net income rising to $2.17 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: Estimate Zapatera's total financing requirements (total assets) and its net funding requirements (discretionary financing needed) for 2014. Note: Use the percentage of sales given in Zapatera Enterprises' balance sheet for 2013. Hint: Make sure to round all intermediate calculations to at least five…
- Tobin Supplies Company expects sales next year to be $500,000. Inventory and accounts receivable will increase $90,000 to accommodate this sales level. The company has a steady profit margin of 12 percent with a 40 percent dividend payout. How much external financing will Tobin Supplies Company have to seek? Assume there is no increase in liabilities other than that which will occur with the external financing.Bondi Beachwear Company expects sales next year to be $310,000. Inventory and accounts receivable will have to be increased by $65,000 to accommodate this sales level. The company has a steady profit margin of 15 percent, with a 10 percent dividend payout. How much external funding will Bondi Beachwear Company have to seek? Assume there is no increase in liabilities other than that which will occur with the external financing. External funds neededThe current year financial statements of Your Health Corporation reported sales of $142,021 million and accounts receivable of $9,731 million. If sales are projected to increase 4% next year, what is the projected accounts receivable balance for the following year? Note: Use a rounded forecasting factor in your computations (for example, 0.044555 = 4.5%). Select one: O a. $8,659 million O O O O b. $9,920 million c. $8,330 million d. $10,191 million e. $9,731 million