Can Someone Help Me With My Homework Bout Financial Forecasting?
Just struggeling to figure it out cause the professor didn’t give out too much information and it is nowhere online for me to get it. Here is problem if someone would like to help.
Tulley App projects next year’s sales to be $20M and current sales are $15M with Current Assets of %5M and Fixed Assets of $5M. The firm’s net profit margin is 5% after taxes. Tulley forecasts that Current Assets will rise in direct proportion to the increase in sales but Fixed Assets will increase by only $100,000. Currently, Tulley has $1.5M in Accounts Payable (which vary directly with sales), $2M in Long-Term Debt (due in 10 years), and Common Equity (including $4M in Retained Earnings) totaling $6.5M. Tulley plans to pay $500,000 in Common Stock Dividends next year.
What are Tulley’s total financing needs ( that is, total assets) for the coming year?
Given the firm’s projections and dividend payment plans, what are its discretionary financing needs?
If someone can at least point me in the right direction here, I would appreciate it. Thank you for your time.
Well first you should write down all the numbers and write them down on a piece of paper and the info around them u should be abe to figure it out and then and add the numbers together and divide by the percents.
It looks like you need to prepare a cash flow analysis by preparing a projected income statement, balance sheet and statement of cash flow.
the forecast looks dim. real and sad