The following is the excel problem for Fin 3320 Summer 2013. Fill in all the bla
ID: 2701891 • Letter: T
Question
The following is the excel problem for Fin 3320 Summer 2013. Fill in all the blanks of the financial statements and the proforma, including the option at the bottom of the page. Also fill in the blanks for the three questions re debt increase, net income and dividends paid. Turn in hard copy (do not email to me) once complete. The excel problem is due July 31, 2013. Chapter 4 - Section 2 A Simple Financial Planning Model A financial plan begins with the current financial statements. The income statement and balance sheet for Computerfield Corporation are: ALPHA/BETA CORPORATION ALPHA/BETA CORPORATION Income Statement Balance Sheet Sales $ 1,000 Assets $ 500 Debt $ 250 Costs 800 Equity 250 Net income Total Total To find the funds the company will need to raise next year to funds its sales gorwth, we begin with the forecasted sales growth. In this case, we will assume that the sales growth for the next year will be: Sales growth: 25% If sales grow, by this amount, we can construct the pro forma, or projected financial statements. Under the assumption that all of the variables will grow by the sales growth rate, the pro forma statements will be: ALPHA/BETA CORPORATION ALPHA/BETA CORPORATION Pro formaIncome Statement Pro forma
Balance Sheet Sales Assets Debt Costs Equity Net income Total Total The advantage of financial planning is that it allows us to see what could happen in the future and the options available. For example, in this case the following must have occurred: Debt increased by: Net income was: So, dividends paid must have been: Of course, that is not the only option available to Alpha/Beta. The company could also keep all of the net income as retained earnings. If this happens, the company will need to repurchase debt in order to keep the balance sheet in balance. The proforma balance sheet under this scenario will be: ALPHA/BETA CORPORATION Pro forma
Balance Sheet Assets Debt Equity Total Total Remember, the purpose of financial planning is not to tell us what to do, but rather allow us to see what might happen and plan for any contingencies. The following is the excel problem for Fin 3320 Summer 2013. Fill in all the blanks of the financial statements and the proforma, including the option at the bottom of the page. Also fill in the blanks for the three questions re debt increase, net income and dividends paid. Turn in hard copy (do not email to me) once complete. The excel problem is due July 31, 2013. Chapter 4 - Section 2 A Simple Financial Planning Model A financial plan begins with the current financial statements. The income statement and balance sheet for Computerfield Corporation are: ALPHA/BETA CORPORATION ALPHA/BETA CORPORATION Income Statement Balance Sheet Sales $ 1,000 Assets $ 500 Debt $ 250 Costs 800 Equity 250 Net income Total Total To find the funds the company will need to raise next year to funds its sales gorwth, we begin with the forecasted sales growth. In this case, we will assume that the sales growth for the next year will be: Sales growth: 25% If sales grow, by this amount, we can construct the pro forma, or projected financial statements. Under the assumption that all of the variables will grow by the sales growth rate, the pro forma statements will be: ALPHA/BETA CORPORATION ALPHA/BETA CORPORATION Pro forma
Income Statement Pro forma
Balance Sheet Sales Assets Debt Costs Equity Net income Total Total The advantage of financial planning is that it allows us to see what could happen in the future and the options available. For example, in this case the following must have occurred: Debt increased by: Net income was: So, dividends paid must have been: Of course, that is not the only option available to Alpha/Beta. The company could also keep all of the net income as retained earnings. If this happens, the company will need to repurchase debt in order to keep the balance sheet in balance. The proforma balance sheet under this scenario will be: ALPHA/BETA CORPORATION Pro forma
Balance Sheet Assets Debt Equity Total Total Remember, the purpose of financial planning is not to tell us what to do, but rather allow us to see what might happen and plan for any contingencies.
Explanation / Answer
Income statement
net income 200
Balance sheet
Assets 500 debt 250
equity 250
Total 500 total 500
sales growth
income staement
sales 1250
costs 1000
net income 250
Balance sheet
Assets 750 debt 500
Equity 250
total 750 total 750
Debt increased by 250
net income was 200
so,dividends paid 50
Balance sheet
Assets 750 Debt 250
Equity 500
total 750 total 750
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