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Finance

I am very lost with this assignment can someone please help me.
I just need one sample thank you.

The Lanford Corporation had 2008 sales of $110 million. The other pertinent
financial data for 2008 is as follows:

2008 Sales $110,000,000
Dividend Payout Rate 55%
Balance in Retained Earnings $41,150,000
Common Stock $11,000,000
Long-Term Bonds $3,550,000
Notes Payable $13,600,000
Profit Margin after Taxes 8.0%

The BALANCE SHEET items that vary directly with sales are as follows:
Cash 7%
Accounts Receivable 15%
Inventory 28%
Net Fixed Assets 36%
Accounts Payable 14%
Accruals 9%

The Comon Stock and the company's Long-Term Bonds will remain constant from 2008 through 2009 at $11 million and $3.55 million, respectiviely.

a. How much additional external capital will be required for next year if sales increase 15%? (Assume that the company is already running at full capacity).

b. What will happen to external fund requirements if Lanford reduces the payou ratio, grows at a slower rate, or suffers a decline in its profit margin? Discuss each of these separately.

c. Prepare a pro forma balance sheet for 2009 assuming that any external funds being acquired will be in the form of Notes Payable. Disregard the information in part
B. in answering this question. Use the information in part A. to develop your pro forma balance sheet.

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Martha

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