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28. Suppose a firm has had the historical sales figures shown as follows. What would be the
forecast for next year's sales using the average approach if it is determined that none of the
years are "stale"?
29. Suppose that PBJ Industries, Inc. currently has the balance sheet shown as follows, and
that sales for the year just ended were $10 million. The firm also has a profit margin of 10
percent, a retention ratio of 25 percent, and expects sales of $12 million next year. If all assets
and current liabilities are expected to increase with sales, what amount of additional funds will
the company need from external sources to fund the expected growth?
30. Suppose that BBM Industries, Inc. currently has the balance sheet shown as follows, and
that sales for the year just ended were $2 million. The firm also has a profit margin of 5 percent,
a retention ratio of 50 percent, and expects sales of $2.5 million next year. If all assets and
current liabilities are expected to increase with sales, what amount of additional funds will the
company need from external sources to fund the expected growth?
31. Suppose that TV Industries, Inc. currently has the balance sheet shown as follows, and
that sales for the year just ended were $5 million. The firm also has a profit margin of 15 percent,
a retention ratio of 25 percent, and expects sales of $5.5 million next year. If all assets and
current liabilities are expected to increase with sales, what amount of additional funds will the
company need from external sources to fund the expected growth?
32. Suppose that Team Industries, Inc. currently has the balance sheet shown as follows, and
that sales for the year just ended were $3 million. The firm also has a profit margin of 20 percent,
a retention ratio of 30 percent, and expects sales of $6 million next year. If all assets and current
liabilities are expected to increase with sales, what amount of additional funds will the company
need from external sources?
33. Suppose a firm has had the historical sales figures shown as follows. What would be the
forecast for next year's sales using regression to estimate a trend?
34. Suppose a firm has had the historical sales figures shown as follows. What would be the
forecast for next year's sales using regression to estimate a trend?
35. Suppose a firm has had the historical sales figures shown as follows. What would be the
forecast for next year's sales using regression to estimate a trend?
36. Suppose a firm has had the historical sales figures shown as follows. What would be the
forecast for next year's sales using regression to estimate a trend?
37. Suppose that Runner Industries currently has the balance sheet shown as follows, and
that sales for the year just ended were $5 million. The firm also has a profit margin of 10 percent,
a retention ratio of 20 percent, and expects sales of $7 million next year. If fixed assets have
enough capacity to cover the increase in sales and all other assets and current liabilities are
expected to increase with sales, what amount of additional funds will the company need from
external sources to fund the expected growth?
38. Suppose that Wave Industries currently has the balance sheet shown as follows, and that
sales for the year just ended were $25 million. The firm also has a profit margin of 10 percent, a
retention ratio of 20 percent, and expects sales of $27 million next year. If fixed assets have
enough capacity to cover the increase in sales and all other assets and current liabilities are
expected to increase with sales, what amount of additional funds will the company need from
external sources to fund the expected growth?
39. Suppose that Road Industries currently has the balance sheet shown as follows, and that
sales for the year just ended were $80 million. The firm also has a profit margin of 5 percent, a
retention ratio of 10 percent, and expects sales of $82 million next year. If fixed assets have
enough capacity to cover the increase in sales and all other assets and current liabilities are
expected to increase with sales, what amount of additional funds will the company need from
external sources to fund the expected growth?
40. Suppose that the 2013 actual and 2014 projected financial statements for Counter Corp.
are initially as shown in the following tables. In these tables, sales are projected to rise 35
percent in the coming year, and the components of the income statement and balance sheet that
are expected to increase at the same 35 percent rate as sales are indicated with an
italics
font.
Assuming that Counter Corp. wants to cover the AFN with 60 percent equity, 25 percent long-
term debt, and the remainder from notes payable, what amount of additional funds will they need
to raise if debt carries an 8 percent interest rate?
41. Suppose that the 2013 actual and 2014 projected financial statements for Carrier Corp.
are initially as shown in the following tables. In these tables, sales are projected to rise 40
percent in the coming year, and the components of the income statement and balance sheet that
are expected to increase at the same 40 percent rate as sales are indicated with an
italics
font.
Assuming that Carrier Corp. wants to cover the AFN with 50 percent equity, 25 percent long-term
debt, and the remainder from notes payable, what amount of additional funds will they need to
raise if debt carries a 10 percent interest rate?
42. Suppose that the 2013 actual and 2014 projected financial statements for Cypress Corp.
are initially as shown in the following tables. In these tables, sales are projected to rise 15
percent in the coming year, and the components of the income statement and balance sheet that
are expected to increase at the same 15 percent rate as sales are indicated with an
italics
font.
Assuming that Cypress Corp. wants to cover the AFN with 35 percent equity, 35 percent long-
term debt, and the remainder from notes payable, what amount of additional funds will they need
to raise if debt carries a 9 percent interest rate?
43. Suppose that the 2013 actual and 2014 projected financial statements for Camera Corp.
are initially as shown in the following tables. In these tables, sales are projected to rise 40
percent in the coming year, and the components of the income statement and balance sheet that
are expected to increase at the same 40 percent rate as sales are indicated with an
italics
font.
Assuming that Camera Corp. wants to cover the AFN with 40 percent equity, 30 percent long-
term debt, and the remainder from notes payable, what amount of additional funds will they need
to raise if debt carries a 7 percent interest rate?
