Question
In: Finance
A pro forma statement indicates that both sales and fixed assets are projected to increase by...
A pro forma statement indicates that both sales and fixed assets are projected to increase by 7 percent over their current levels. Given this, you can safely assume that the firm:
a. is projected to grow at the internal rate of growth.
b. is projected to grow at the sustainable rate of growth.
c. currently has excess capacity.
d. is currently operating at full capacity.
e. retains all of its net income.
Solutions
Expert Solution
Ans- Option D. is currently operating at full capacity.
Since the Sales and Fixed Assets are expected to increase at the same rate over there current levels, it means that the Fixed assets is operating at full capacity and to compensate for the increase in Sales from current Level, Fixed asset also has to be increased
jeff jeffy answered 2 years agoRelated Solutions
Chapter 4: 3. Fire Corp financial statements: Pro forma income statement Pro forma balance sheet Sales...
Chapter 4:
3. Fire Corp financial statements:
Pro forma income statement
Pro forma balance sheet
Sales
$ 32,000
Assets
$25,300
Debt
$ 5,800
Costs
$ 24,400
________
Equity
$ 19,500
Net income
$ 7,600
Total
$25,300
Total
$ 25,300
It expects 15% sales increase. It also predicts every item on
the balance sheet will increase
by 15% as well.
1.Create the pro forma statements.
2. What’s the plug variable here?
3. If Fire Corp pays half of income as dividend,...
Which of the following budgeted pro forma financial statements is prepared first? A. Pro forma statement...
Which of the following budgeted pro forma financial statements
is prepared first?
A. Pro forma statement of cash flows
B. Pro forma income statement
C .Pro forma balance sheet
D. May be prepared in any order
explain why please
Describe the Pro Forma statement and the percent of sales method for future cash needs. What...
Describe the Pro Forma statement and the percent of sales method
for future cash needs.
What are the pros and cons of each method?
Which method would you prefer to use and why?
TRUE or FALSE 1) On a pro forma income statement, the value we enter for sales...
TRUE or FALSE
1) On a pro forma income statement, the value we enter for sales
revenue is normally derived
from our forecast.
2) One does not need to determine if the operating expenses are
in line with industry averages.
3) Start-up expenses are those expenses that will be incurred by
the business one time.
Pro forma income statement. The marketing department of Metroline Manufacturing estimates that its sales in 2020...
Pro forma income statement. The marketing
department of Metroline Manufacturing estimates that its sales in
2020 will be $1.64 million. Interest expense is expected to remain
unchanged at $37,000, and the firm plans to pay $69,000 in cash
dividends during 2020. Metroline Manufacturing's income statement
for the year ended December 31, 2019, is given below, along with
a breakdown of the firm's cost of goods sold and operating
expenses into their fixed and variable components.
Income Statement
Sales Revenue 1,405,000...
Pro forma income statement The marketing department of Metroline Manufacturing estimates that its sales in 2020...
Pro forma income statement The marketing department of
Metroline Manufacturing estimates that its sales in 2020 will be
$1.63 million. Interest expense is expected to remain unchanged at
$32,000,and the firm plans to pay $72,000 in cash dividends during
2020.
Metroline Manufacturing's income statement for the year ended
December 31, 2019, is given, along with a breakdown of the
firm's cost of goods sold and operating expenses into their fixed
and variable components.
a. Use the percent-of-sales method to prepare...
Pro forma income statement The marketing department of Metroline Manufacturing estimates that its sales in 2020...
Pro forma income statement The marketing department of Metroline
Manufacturing estimates that its sales in 2020 will be $ 1.64
million. Interest expense is expected to remain unchanged at $ 38
comma 000 , and the firm plans to pay $ 74 comma 000 in cash
dividends during 2020. Metroline Manufacturing's income statement
for the year ended December 31, 2019 , is given LOADING... , along
with a breakdown of the firm's cost of goods sold and operating
expenses into...
Pro forma income statement The marketing department of Metroline Manufacturing estimates that its sales in 2020...
Pro forma income statement The marketing department of
Metroline Manufacturing estimates that its sales in 2020 will be
$1.53 million. Interest expense is expected to remain unchanged at
$34,000, and the firm plans to pay $74,000 in cash dividends during
2020. Metroline Manufacturing's income statement for the year ended
December31, 2019i is given (See belong Graph) ,along with a
breakdown of the firm's cost of goods sold and operating expenses
into their fixed and variable components. a. Use the
percent-of-sales...
prepare a 3-year pro forma income statement and pro forma balance sheet, including expected cash flows...
prepare a 3-year pro forma income statement and pro forma
balance sheet, including expected cash flows and all associated
assumptions.
Company: Bishrom (Nepali eyewear brand) outsources all the
manufacturing in china.
Please assume all the data. you can make a fake statement.
Subject: Entrepreneurial finance
P4-15 Pro forma income statement The marketing department of Metroline Manufactur ing estimates that its sales...
P4-15 Pro forma income statement The marketing department of
Metroline Manufactur ing estimates that its sales in 2016 will be
$1.5 million. Interest expense is expected to remain unchanged at
$35,000, and the firm plans to pay $70,000 in cash divi dends
during 2016. Metroline Manufacturing’s income statement for the
year ended December 31, 2015, and a breakdown of the firm’s cost of
goods sold and operating expenses into their fixed and variable
components are given below. a. Use the...
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