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Orange, Incorporated Balance Sheet (in dollars) for the Year Ending December 31, 2017 Cash 2,000 Notes payable 2,

Orange, Incorporated

Balance Sheet (in dollars) for the Year Ending December 31, 2017


  • Cash                                       2,000               Notes payable                                    2,000
  • Accounts receivable             3,000              Accounts payable                               4,000
  • Inventory                               9,000                Accruals                                              3,000
  • Current assets                     14,000              Current liabilities                               9,000
  • Net fixed assets                   36,000            LT Debt 1                                            4,000
  • Total assets                          50,000           Common stock ($2.00 par value)       4,000           

                                                                               Additional paid in capital                  10,000

                                                                               Retained earnings                            13,000

                                                                               Total liabilities & equity                     50,000


Sales for 2017 were $250,000 and the projected growth rate in sales for 2018 is 60%. The 2018 projected net profit margin is 6.5%. Orange plans to pay a dividend of $2.65 per share in 2018. Cash will grow at 40 percent of the growth rate in sales, accounts receivable will grow at 85 percent of the growth rate in sales, inventory will grow at 120 percent of the growth rate in sales, net fixed assets will grow as a percent of sales, accounts payable and accruals will grow as a percent of sales, and long-term debt will increase by 65 percent of the growth in net fixed assets. All other financing accounts will remain constant. Based on these assumptions, compute Outside Funds Needed (OFN) for 2018. 

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