Upton's balance sheet as of December 31, 2019, is shown here (millions of dollars): Cash $ 3.5...

Upton's balance sheet as of December 31, 2019, is shown here (millions of dollars):

Cash	$ 3.5	Accounts payable	$ 9.0
Receivables	26.0	Notes payable	18.0
Inventories	58.0	Line of credit	0
Total current assets	$ 87.5	Accruals	8.5
Net fixed assets	35.0	Total current liabilities	$ 35.5
		Mortgage loan	6.0
		Common stock	15.0
		Retained earnings	66.0
Total assets	$122.5	Total liabilities and equity	$122.5

Sales for 2019 were $475 million and net income for the year was $14.25 million, so the firm's profit margin was 3.0%. Upton paid dividends of $5.7 million to common stockholders, so its payout ratio was 40%. Its tax rate was 25%, and it operated at full capacity. Assume that all assets/sales ratios, (spontaneous liabilities)/sales ratios, the profit margin, and the payout ratio remain constant in 2020.

If sales are projected to increase by $99.75 million, or 21%, during 2020, use the AFN equation to determine Upton's projected external capital requirements. Enter your answers in millions. $________millions.
Using the AFN equation, determine Upton's self-supporting growth rate. That is, what is the maximum growth rate the firm can achieve without having to employ nonspontaneous external funds?_____%
Use the forecasted financial statement method to forecast Upton's balance sheet for December 31, 2020. Assume that all additional external capital is raised as a line of credit at the end of the year and is reflected (because the debt is added at the end of the year, there will be no additional interest expense due to the new debt). Assume Upton's profit margin and dividend payout ratio will be the same in 2020 as they were in 2019. What is the amount of the line of credit reported on the 2020 forecasted balance sheets?
(Hint: You don't need to forecast the income statements because the line of credit is taken out on the last day of the year and you are given the projected sales, profit margin, and dividend payout ratio; these figures allow you to calculate the 2020 addition to retained earnings for the balance sheet without actually constructing a full income statement.) Enter your answers in millions. For example, an answer of $10,550,000 should be entered as 10.55. Round your answers to two decimal places.

Upton Computers Pro Forma Balance Sheet December 31, 2020 (Millions of Dollars)
Cash	$
Receivables	$
Inventories	$
Total current assets	$
Net fixed assets	$
Total assets	$
Accounts payable	$
Notes payable	$
Line of credit	$
Accruals	$
Total current liabilities	$
Mortgage loan	$
Common stock	$
Retained earnings	$
Total liabilities and equity	$

Expert Solution

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

jeff jeffy answered 1 year ago

Upton's balance sheet as of December 31, 2019, is shown here (millions of dollars): Cash $...

Upton's balance sheet as of December 31, 2019, is shown here (millions of dollars): Cash $ 3.5 Accounts payable $ 9.0 Receivables 26.0 Notes payable 18.0 Inventories 58.0 Line of credit 0 Total current assets $ 87.5 Accruals 8.5 Net fixed assets 35.0 Total current liabilities $ 35.5 Mortgage loan 6.0 Common stock 15.0 Retained earnings 66.0 Total assets $122.5 Total liabilities and equity $122.5 Sales for 2019 were $250 million and net income for the year was $7.5 million,...

Beltway Technologies: Balance Sheet for the Year Ended December 31, 2017 (in Millions of Dollars) Cash...

Beltway Technologies: Balance Sheet for the Year Ended December 31, 2017 (in Millions of Dollars) Cash Accounts receivable Inventory Current assets Net fixed assets Total assets $ 5.1 26.4 56.1 $ 87.6 26.3 $113.9 Accounts payable Accruals Notes payable Current liabilities Long-term debt Preferred stock Common stock Total claims $ 3.8 5.9 1.3 $10.1 40.8 9.7 53.3 $113.9 To begin, Bill reviewed Beltway's 2017 balance sheet, which is contained in Table 1. Next, Bill...

Some balance sheet information is shown here (all values n millions of dollars). see at the...

Some balance sheet information is shown here (all values n millions of dollars). see at the end questions: a. What change in the book value of the company's equity took place at the end of 2015 ? b. Is the company's market-to-book ratio meaningful? Is its book debt-equity ratio meaningful? Explain. c. Find the company's other financial statements from that time online. What was the cause of the change to its book value of equity at the end of 2015...

Balance Sheet Preparation The December 31, 2016, balance sheet accounts of Hitt Company are shown here...

Balance Sheet Preparation The December 31, 2016, balance sheet accounts of Hitt Company are shown here in alphabetical order: Accounts Payable $20,800 Equipment $72,400 Accounts Receivable 21,000 Inventory 37,200 Accumulated Depreciation: Buildings 53,000 Land 30,000 Accumulated Depreciation: Equipment 35,100 Marketable Securities (short-term) 6,100 Additional Paid-in Capital on Common Stock 24,000 Patents (net) 9,500 Additional Paid-in Capital on Preferred Stock 11,500 Preferred Stock, $100 par 21,000 Allowance for Doubtful Accounts 800 Retained Earnings 53,740 Bonds Payable (due 2024) 77,000 Revenues 107,000...

Prepare a balance sheet as of December 31, 2019. BUSINESS SOLUTIONS Balance Sheet December 31, 2019...

Prepare a balance sheet as of December 31, 2019. BUSINESS SOLUTIONS Balance Sheet December 31, 2019 Assets Cash Accounts receivable Prepaid insurance Prepaid insurance Prepaid rent Office equipment Accumulated depreciation—Office equipment 0 Accumulated depreciation—Computer equipment Computer equipment 0 Total Assets 0 Liabilities Accounts payable Wages payable Unearned computer services revenue Total Liabilities 0 Equity Retained earnings Common stock Total equity $0 Total Liabilities and Equity $0 After the success of the company’s first two months, Santana Rey continues to operate...

The December 31, 2019, balance sheet for Baird Corporation is presented here. These are the only...

The December 31, 2019, balance sheet for Baird Corporation is presented here. These are the only accounts on Baird’s balance sheet. Amounts indicated by question marks (?) can be calculated using the following additional information: BAIRD CORPORATION Balance Sheet As of December 31, 2019 Assets Cash $ 20,000 Accounts receivable (net) ? Inventory ? Property, plant, and equipment (net) 295,000 $ 442,000 Liabilities and Stockholders’ Equity Accounts payable (trade) $ ? Income taxes payable (current) 20,000 Long-term debt ? Common...

The December 31, 2019, balance sheet for Franklin Corporation is presented here. These are the only...

The December 31, 2019, balance sheet for Franklin Corporation is presented here. These are the only accounts on Franklin’s balance sheet. Amounts indicated by question marks (?) can be calculated using the following additional information: FRANKLIN CORPORATION Balance Sheet As of December 31, 2019 Assets Cash $ 40,000 Accounts receivable (net) ? Inventory ? Property, plant, and equipment (net) 294,000 $ 441,000 Liabilities and Stockholders’ Equity Accounts payable (trade) $ ? Income taxes payable (current) 40,000 Long-term debt ? Common...

Riyadh Star, Balance Sheet Statement December 31, 2018 & December 31, 2019 2018 2019 Cash $ ...

Riyadh Star, Balance Sheet Statement December 31, 2018 & December 31, 2019 2018 2019 Cash $ 104,000 $ 123,250 Accounts Receivable 183,350 100,000 Inventory 250,000 210,000 Prepaid Expenses 80,000 120,000 Equipment (Net) 584,650 800,000 Total Assets $ 1,202,000 $ 1,353,250 Accounts Payable $ 220,000 $ 180,000 Salary Payable 94,000 56,250 Interest Payable 20,000 37,000 Bonds Payable 320,000 300,000 Common Shares 370,000 580,000 Retained Earnings...

Stevens Textile Corporation's 2019 financial statements are shown below: Balance Sheet as of December 31, 2019...

Stevens Textile Corporation's 2019 financial statements are shown below: Balance Sheet as of December 31, 2019 (Thousands of Dollars) Cash $1,080.00 Accounts payable $4,320 Receivables $6,480.00 Accruals 2,880 Inventories $9,000.00 Line of credit 0 Total current assets $16,560.00 Notes payable 2,100 Net fixed assets $12,600.00 Total current liabilities $9,300 Mortgage bonds 3,500 Common stock 3,500 Retained earnings 12,860 Total assets $29,160.00 Total liabilities and equity $29,160 Income Statement for December 31, 2019 (Thousands of Dollars) Sales...

Stealcase’s Balance Sheet, as of December 31(thousands of dollars)

Stealcase’s Balance Sheet, as of December 31(thousands of dollars) 2017 2018 2017 2018 Cash 30 25 Account Payable 35 50 Accts Receivable 5 20 Bank Loan 25 25 Inventory 100 100 Accrued Taxes 15 25 Current Assets 135 245 Long Term, Dept current portion 12 12 Current Liabilities 87 112 Net Plant & Equip 200 250 Long-Term Dept 100 95 Common Stock (10,000 shares) 100 100 Additional paid-in...

Question