Table 4.5 a Financial Manager at General Talc Mines Has Gathered the Gathered

question 130

Multiple Choice

Table 4.5
A financial manager at General Talc Mines has gathered the financial data essential to prepare a pro forma balance sheet for cash and profit planning purposes for the coming year ended December 31, 2015. Using the percent-of-sales method and the following financial data, prepare the pro forma balance sheet in order to answer the following multiple choice questions.
(a) The firm estimates sales of $1,000,000.
(b) The firm maintains a cash balance of $25,000.
(c) Accounts receivable represents 15 percent of sales.
(d) Inventory represents 35 percent of sales.
(e) A new piece of mining equipment costing $150,000 will be purchased in 2010.
Total depreciation for 2010 will be $75,000.
(f) Accounts payable represents 10 percent of sales.
(g) There will be no change in notes payable, accruals, and common stock.
(h) The firm plans to retire a long term note of $100,000.
(i) Dividends of $45,000 will be paid in 2015.
(j) The firm predicts a 4 percent net profit margin.
Balance Sheet
General Talc Mines
December 31, 2014
-The external financing required in 2015 will be ________. (See Table 4.5)

• A) $230,000
• B) $240,000
• C) $0
• D) $195,000

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Definitions:

Disorganized Behavior

Acting in strange or unusual ways, including strange movement of limbs and inappropriate self-care, such as failing to dress properly or bathe.

Schizophrenia

A mental disorder characterized by delusions, hallucinations, disorganized speech and behavior, and impaired cognitive ability.

Negative Symptom

A term often used in psychiatry to describe the absence or diminution of normal behavior or characteristics, such as lack of emotion or motivation.

Positive Symptom

In the context of psychological disorders, referring to an excess or distortion of normal functions, such as hallucinations or delusions.