22 Jul WHAT IS THE AMOUNT OF NOTES PAYABLE REPORTED ON THE 2011 FORECASTED BALANCE SHEETS?
I need ALL the excel blanks that answer the question to be filled in. I appreciate your time ! Pleas Show more I need ALL the excel blanks that answer the question to be filled in. I appreciate your time ! Please help me with this. I have included a picture of the actual excel spreadsheet to act as a guide. Thanks! 12-9 Upton Computers makes bulk purchases of small computers stocks them in conveniently located warehouses ships them to its chain of retail stores and has a staff to advise customers and help them set up their new computers. Uptons balance sheet as of December 31 2010 is shown here (millions of dollars): a. If sales are projected to increase by $70 million or 20% during 2011 use the AFN equation to determine Uptons projected external capital requirements. b. Using the AFN equation determine Uptons self-supporting growth rate. That is what is the maximum growth rate the firm can achieve without having to employ nonspontaneous external funds? c. Use the forecasted financial statement method to forecast Uptons balance sheet for December 31 2011. Assume that all additional external capital is raised as a bank loan at the end of the year and is reflected in notes payable (because the debt is added at the end of the year there will be no additional interest expense due to the new debt). Assume Uptons profit margin and dividend payout ratio will be the same in 2011 as they were in 2010. What is the amount of notes payable reported on the 2011 forecasted balance sheets? (Hint: You dont need to forecast the income statements because you are given the projected sales profit margin and dividend payout ratio; these figures allow you to calculate the 2011 addition to retained earnings for the balance sheet. 12-9 Key Input Data: Used in the forecast Sales Increase 10% Tax rate 40% Dividends 112000.00 Dividends Growth 3.70% Interest Rate on Loans 13% (000) 2010 Forecasting 2010 2011 2011 Actual basis Ratios Inputs Forecast Sales $3600000 Growth Expenses (excluding depr. & amort.) $3279720 % of sales EBIT $320280 Net Interest Expense $18280 Interest rate x beginning of year debt Interest rate x beginning of year debt Interest rate x beginning of year debt Interest rate x beginning of year debt Interest rate x beginning of year debt EBT $302000 Taxes (40%) $120800 Net Income $181200 Common dividends $108000 Addition to retained earnings (DRE) $73200 (000) 2010 Forecasting 2010 2011 Actual basis Ratios Inputs Without AFN AFN With AFN Assets: Cash and cash equivalents A* 180000.00 % of sales 0.000% Short-term investments A* Previous Accounts Receivable A* 360000.00 % of sales Inventories A* 720000.00 % of sales Total current assets A* 1260000.00 Fixed assets A* 1440000.00 % of sales Total assets A* 2700000.00 Liabilities and equity Accounts payable L* 360000.00 % of sales Accruals L* 180000.00 % of sales Notes payable 156000.00 Previous Total current liabilities 696000.00 Long-term debt Previous Total liabilities 696000.00 Common stock 1800000.00 Previous Retained Earnings 204000.00 Previous + Change in R/E Previous + Change in R/E Previous + Change in R/E Total common equity 2004000.00 Total liabilities and equity 2700000.00 Required assets = Specified sources of financing = Additional funds needed (AFN) = Required additional notes payable = Additional short-term investments = Below is just a guide for above. Show less
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