Question.Forecast the financing items on next year’s balance sheet for PartsCo. Assume long-term debt remains at $215 million, no external equity is raised, and no dividends are paid.If necessary, use short-term debt to finance cash shortfalls. Your forecast should be consistent with forecasts in Questions 2 and 3.
This was question 2 and 3 :2))Exhibit 3.14 presents the income statement and balance sheet for PartsCo, a
$900 million supplier of machinery parts. Next year, the company is expected
to grow revenues by 15 percent to $1,035 million. Using the methodology
outlined in Exhibit 9.3, forecast next year’s income statement for PartsCo.
Assume next year’s forecast ratios are identical to this year’s ratios. Forecast
depreciation as a percentage of last year’s property and equipment. Forecast
interest as a percentage of last year’s total debt.
3) Using the methodology outlined in Exhibit 3.10, forecast the operating items
on next year’s balance sheet for PartsCo. Forecast each balance sheet item as
a function of revenue, except inventory and accounts payable, which should
be forecast as a function of cost of sales. Your forecast should be consistent
with the revenue and cost of sales forecast in Question 2.Ex 9.14
Prior Year Current YEAr
Prior Year Current Year
Property and equipment
Earnigs before taxes
Liabilities and Equity
Prior year current year
short term debt
long term debt
liabilities and equity
This question was answered on: May 23, 2022
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