In the spring of 2013 the Caswell publish company established a customer publish business for its business clients. These clients consisted principally of small to medium size companies in round rock Texas. However, the company plan were disrupted when they landed a large printing contract from Dell computers Corp ( Dell) that they expected would run for several years. Specially the new contract would increase firm revenues by 100%. Consequently Caswell 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 reflect the firm estimates of the financial impact of the 100% revenue growth.
a) how much new discretionary financing will caswell require based on the above estimates.
b) Given the nature of the new contract and the specific needs for financing that the firm expect, what recommendations might you offer to the firm CFO as to specific sources of financing the firm should to fulfill its DFN?
a) The discretionary financing needs are $ ( round nearest dollar)
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 firm chief financial officer as to specific sources of financing the firm should seek to fulfill its DFN? ( select all the choices that apply below)
a) Retained earnings
b) Long term-debt
c)Sale of fixed assets
d) Notes payable
e) common stock