(Discretionary financing needs) In the spring of 2013 the Caswell Publishing Company established a custom publishing business for its business clients.
(Discretionary financing needs) In the spring of 2013 the Caswell Publishing Company established a custom publishing business for its business clients. These clients consisted principally of small to medium size companies in Round Rock, Texas. However, the company's plans were disrupted when they landed a large printing contract from Dell Computers Corp. that they expected would run for several years. Specifically the new contract would increase firm revenues by 100 percent. Consequently, Caswell's management knew they would need to make some significant changes in firm capacity and quickly. The following balance sheet for 2013 and pro forma balance sheet for 2014 relfect the firms estimates of the financial impact of the 100 percent revenue growth
A.) How much new discretionary financing will Caswell require based on the attached estimates?
B.) Given the nature of the new contract and the specific needs for financing that the firm expects, what recommendations might you offer to the firms CFO as to specific sources of financing the firm should seek to fulfill DFN? (Select all the choices that may apply)
A.) Common Stock
B.) Retained Earnings
C.) Notes payable
D.) Long term Debt
E.) Sale of fixed assets