Pro Forma Statements and Ratio
Not what you're looking for?
Upton Computers makes bulk purchases of small computers, stocks them in conveniently located warehouses, and ships them to its chain of retail stones. Upton's balance sheet as of December 31, 2007, is shown here (millions of dollars).
Cash...........................$ 3.5 Accounts payable.....................$ 9.0
Receivables.................26.0 Notes payable............................18.0
Inventories...................58.0 Accruals........................................8.5
Total current assets..$87.5 Total current liabilities...............$35.5
Net fixed assets..........35.0 Mortgage Loan..............................6.0
Common stock.............................15.0
Retained earnings..........................66.0
Total assets............$122.5 Total liabilities and equity..........$122.5
Sales for 2007 were $350 million, while net income for the year was $10.5 million. Upton paid dividends of $4.2 million to common stockholders. The firm is operating at full capacity. Assume that all ratios remain constant.
(a) What will Upton Computer's external capital requirements be if sales increase by $70 million?
Purchase this Solution
Solution Summary
Response discusses the steps to compute the Pro Forma Statements and Ratio
Solution Preview
pton Computers makes bulk purchases of small computers, stocks them in conveniently located warehouses, and ships them to its chain of retail stones. Upton's balance sheet as of December 31, 2007, is shown here (millions of dollars).
Cash...........................$ 3.5 Accounts payable.....................$ 9.0
Receivables.................26.0 Notes payable............................18.0
Inventories...................58.0 ...
Purchase this Solution
Free BrainMass Quizzes
Basic Social Media Concepts
The quiz will test your knowledge on basic social media concepts.
Writing Business Plans
This quiz will test your understanding of how to write good business plans, the usual components of a good plan, purposes, terms, and writing style tips.
Understanding Management
This quiz will help you understand the dimensions of employee diversity as well as how to manage a culturally diverse workforce.
Change and Resistance within Organizations
This quiz intended to help students understand change and resistance in organizations
Business Ethics Awareness Strategy
This quiz is designed to assess your current ability for determining the characteristics of ethical behavior. It is essential that leaders, managers, and employees are able to distinguish between positive and negative ethical behavior. The quicker you assess a person's ethical tendency, the awareness empowers you to develop a strategy on how to interact with them.