Historia americana

17-9 a. Magee Computers
Pro Forma Balance Sheet
December 31, 2009
($ millions)

Pro FormaAfter
2009 (1 + g) Additions Pro Forma Financing Financing
Cash $ 3.5 (1.2) $ 4.20$ 4.20
Receivables 26.0 (1.2) 31.20 31.20
Inventories 58.0 (1.2) 69.60 69.60
Total currentassets $ 87.5 $105.00 $105.00
Net fixed assets 35.0 (1.2) 42.00 42.00
Total assets $122.5 $147.00$147.00

Accounts payable $ 9.0 (1.2) $ 10.80 $ 10.80
Notes payable 18.0 18.00 +13.44 31.44
Accruals 8.5 (1.2)10.20 10.20
Total current liabilities $ 35.5 $ 39.00 $ 52.44
Mortgage loan 6.0 6.006.00
Common stock 15.0 15.00 15.00
Retained earnings 66.0 7.56* 73.56 73.56
Total liab. and equity $122.5$133.56 $147.00

AFN = $ 13.44

*PM = $10.5/$350 = 3%.

Payout = $4.2/$10.5 = 40%.

NI = $350 x 1.2 x 0.03 = $12.6.Addition to RE = NI - DIV = $12.6 ─ 0.4($12.6) = 0.6($12.6) = $7.56.

b. Current ratio = $105/$52.44 = 2.00x

The current ratio is poor compared to 2.5x in 2005 and theindustry average of 3x.

Debt/Total assets = $58.44/$147 = 39.8%.

The debt ratio is too high compared to 33.9 percent in 2009 and a 30 percent industry average.

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