B512 Solutions to Chapter 4 Problems
Autor: Azankhan • November 10, 2017 • Essay • 7,113 Words (29 Pages) • 655 Views
B512 SOLUTIONS TO CHAPTER 4 PROBLEMS
4-5 a. AFN = (A*/S)(ΔS) – (L*/S)(ΔS) – MS1(1 – d)
= [pic 1]($70) - [pic 2]($70) - [pic 3]($420)(0.6) = $13.44 million.
b. Upton Computers
Pro Forma Balance Sheet
December 31, 2002
(Millions of Dollars)
Forecast Pro Forma
Basis % after
2001 2002 Sales Additions Pro Forma Financing Financing
Cash $ 3.5 0.01 $ 4.20 $ 4.20
Receivables 26.0 0.743 31.20 31.20
Inventories 58.0 0.166 69.60 69.60
Total current
assets $ 87.5 $105.00 $105.00
Net fixed assets 35.0 0.1 42.00 42.00
Total assets $122.5 $147.00 $147.00
Accounts payable $ 9.0 0.0257 $ 10.80 $ 10.80
Notes payable 18.0 18.00 +13.44 31.44
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