Please use the following projections for Top-A1 Inc.: •Total sales of $154,000 •Cost of goods sold equal to 77.5 percent of sales • Total expenses equal to 14.8 percent of sales • Tax rate of 35 percent • Beginning equity of $46,100 . Beginning inventory of $13,000 . Age of ending inventory of 61 days Minimum cash balance of $10,900 Accounts receivable of 32 days Fixed assets of $64,100 Accounts payable of 35 days
Assume Top-A1 has a dividend payout of 45 percent. When total sales are $154,000, age of payables is 35 days, and long-term debt is $45,997, what would be the impact on Top-A1's pro- forma long-term debt if sales were to change to $199,000 and the age of payables were to change to 47 days?
