What is your Anumber? There are 8 digits in these positions…
What is your Anumber? There are 8 digits in these positions A12345678 Answer this question on the page provided near the end of the test Santa’s Sleigh Stockers 2024 financial statements are shown below. Suppose 2025 sales are projected to be $(Your Values 123456– ) in Fall of 2025. Determine the additional funds needed. (ONLY If the last number of your A number is EVEN, Use this information for your problem ) Assume that the company was operating at 70% capacity in 2024, that it cannot sell off any of its fixed assets, and that any required financing will be borrowed as notes payable. Also, assume that assets, spontaneous liabilities, and operating costs are expected to change by the same percentage as sales. Use the percent of sales method to develop a pro forma balance sheet and income statement for December 31, 2025. Use an interest rate of 10 percent on the balance of debt at the beginning of the year to compute interest (cash pays no interest). (ONLY If the last number of your A number is ODD, use this information for your problem) Assume that the company was operating at FULL capacity in 2024, that it cannot sell off any of its fixed assets, and that any required financing will be borrowed as notes payable. Also, assume that assets, spontaneous liabilities, and operating costs are expected to change by the same percentage as sales. Use the percent of sales method to develop a pro forma balance sheet and income statement for December 31, 2025. Use an interest rate of 8 percent on the balance of debt at the beginning of the year to compute interest (cash pays no interest). Santa’s Sleigh Stockers 2024 Balance Sheet: Cash $1,080 Accounts Payable $2,000 Short Term Investments 2,000 Accruals 2,880 Receivables 7,480 Notes payable 4,420 Inventories 8,000 Total current liabilities $9,300 Total current assets $18,560 Mortgage bonds 5,500 Net fixed assets 12,600 Common stock 4,500 Retained earnings 11,860 Total assets $31,160 Total liabilities and equity $31,160 Santa’s Sleigh Stockers 2024 Income Statement Sales $38,000 Operating costs 30,440 Earnings before interest and taxes $7,560 Interest 560 Earnings before taxes $7,000 Taxes (40%) 2,800 Net income $4,200 Dividends (75%) $3150 Addition to retained earnings $1,050 . On Your Blank Paper – Complete a Pro Forma Income Statement and Balance Sheet USING THE PERCENT OF SALES TECHNIQUE and answer these questions that Follow: Sales Operating costs Earnings before interest and taxes Interest Earnings before taxes Taxes (40%) Net income Dividends (75%) Addition to retained earnings Cash Accounts Payable Short Term Investments Accruals Receivables Notes payable Inventories Total current liabilities Total current assets Mortgage bonds Net fixed assets Common stock Retained earnings Total assets Total liabilities and equity ANSWER THESE QUESTIONS A. What is your A number digit and is it ODD or Even? B. What is the Percentage change in sales from 38,000 (the original) to the New Sales (based on your A number) {The percent change in sales is = (new -old)/(old)} C What is the projected Value of EBIT for 2025? D. What is the Projected value of Interest expense in 2025? E. What is the Change in Retained Earnings projected for 2025 from the income statement? F. What is the projected value for Current Assets in 2025? G. What is the projected value for Total Assets in 2025? H. What is the balance sheet value for Retained Earnings for 2025? I. What is the value of Total Liabilities plus Owner’s Equity in 2025? J. What is the Additional Financing needed? Remembering that the Formula for AFN is : AFN=A* x – L* x – (M1)x(S1)x(1-payout ratio) K. (USE THE 2024- Beginning Values) IF using the formula, what would be the values for A* and L* of the formula? L. What is the AFN using the formula?