The Manning Company has the following financial statements, which are representative of the company's historical average. (file is attached)
The firm is expecting a 20 percent increase in sales next year, and management is concerned about the company's need for external funds. The increase in sales is expected to be carried out without any expansion of fixed assets, but rather through more efficient asset utilization in the existing store. Among liabilities, only current liabilities vary directly with sales.© BrainMass Inc. brainmass.com October 9, 2019, 4:07 pm ad1c9bdddf
This solution calculates the pro forma balance sheet and income statement for year two to determine financing needs.