Finance 304 homework, economics homework help

User Generated

Qnanr

Economics

Description

follow the file.

Unformatted Attachment Preview

FINANCE 304 COMPUTER ASSIGNMENT INSTRUCTIONS: You will be allowed to do this project on any spreadsheet software packages. The instructor currently has access to the following packages: (1) Excel (2) Quattro Pro. The use of any other software may be approved by the instructor. PROJECT Doredo Steel Company is a wholesale steel distributor which purchase steel in carload lots and sells to several thousand steel users. The nature of the steel business requires that the company maintain large inventories to take care of customer requirements in the event of mill strikes or other delays. In examining records from 1992 to 2015, the company found consistent relationships among the following accounts as a percent of sales: Current assets Net fixed assets Accounts payable Other current liab. Profit margin 20% 60% if Sales < $53 million 70%, otherwise. 8% 6% 12% The company’s sales for 2016 were $40 million. The company expects to grow by $6 million per year over the next 5 years. The company wants to project its financial requirements for each of the next 5 years, assuming that the projected sales levels are achieved. Assume further that the company pays out 25 percent of earnings as dividends. Construct pro forma balance sheets for the end of each of the next 5 years (from 2017 to 2021), assuming that 20 percent by issuing long-term debt, and 80 percent by selling new common stock. NOTE: You will be expected to unload your file to the Canvas by 11:00 am on March 22. NAME ____________________ ____________________________________________________________________________________ Doredo Steel Company PRO FORMA Balance Sheet For the Period of 2017-2021 (Thousands of Dollars) ____________________________________________________________________________________ YEAR 2016 2017 2018 2019 2020 2021 Sales 40,000 $0.0 +N5+ +N6+ +N7+ $0.0 Current A 10,000 $0.0 +P8+ +P9+ +P10+ $0.0 Fixed A 26,000 Total 36,000 Acct Payable 5,000 Other cur L 2,500 L/t debt 9,000 Common St 14,000 Retained 5,500 Tot. L&E 36,000 *Interests $120,000 Constant
Purchase answer to see full attachment
User generated content is uploaded by users for the purposes of learning and should be used following Studypool's honor code & terms of service.

Explanation & Answer

There you go..Let me know if you need anything and goodbye

Name:

YEAR
SALES
CURRENT Assets
FIXED Assets
TOTAL
Acct Payable
Other cu...


Anonymous
Super useful! Studypool never disappoints.

Studypool
4.7
Trustpilot
4.5
Sitejabber
4.4

Related Tags