Samantha Karp Pro Forma Statements

Samantha Karp Pro Forma Statements - Decline in profit...

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Change in Sales = 15% x $100 Million = $15 Million Spontaneous Assets = 5% + 15% + 25% +40% = 85% Spontaneous Liabilities = 15% + 10% = 25% RNF = (85% x 15 Million) - (25% x 15 Million) - (6% x 115 Million) (1 - 0.5) RNF = $5.55 Million If payout ratio is reduced more earnings will be retained and it will lower external funds. Slower growth rate means lower assets which in turn will lower the external funds needed.
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Unformatted text preview: Decline in profit margin will result to lower earnings and the comapny will raise the need for exter Cash $5.75 Accounts Payable $17.25 Accounts Receivable 17.25 Accrual 11.50 Inventory 28.75 Notes Payable 17.55 Net Capital Assets 46.00 Long Term Bonds 5.00 Common Stock 10.00 Retained Earnings 36.45 Total $97.75 Total $97.75 rnal funds....
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This note was uploaded on 10/30/2010 for the course FIN 320 ASDFI taught by Professor Asdf during the Spring '09 term at University of Phoenix.

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Samantha Karp Pro Forma Statements - Decline in profit...

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