chapter 6-10 - Student instructions This worksheet is for...

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PROBLEM 6-10 Bright Future Corporation Forecasting Assumptions: Sales growth 20% given Cost of Goods Sold Cash Marketable Securities Accounts Receivable Inventory Prepaid Expenses Accounts Payable Accrued Expenses Depreciation Expense Interest Expense Notes Payable Long-Term Debt Common Stock Capital in Excess of Par Tax rate 40% Dividends: pay same dollar amount in 2007 as in 2006 Bad Debt Allowance 17% of accounts receivable Student instructions: This worksheet is for problem 6-10. This tab contains forecasting assumptions next tab contains Bright Future's financial statements and the pro forma forecast (Question 1.). The contains questions 2 a-e, 3, and 4. Review the forecasting assumptions below and then proceed to tab to complete the forecast. These items are projected to remain the same percentage of sales in 2007 as they were in 2006. That is the same as saying that in 2007 the items will grow at the same rate as sales. These items are projected to remain the same value in 2007 as they were in 2006.
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s. The final tab the next
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BRIGHT FUTURE CORPORATION Historical and Projected Income Statements Historical Projected 2006 2007 Sales $10,000,000 $12,000,000 Cost of goods Sold $4,000,000 $4,800,000 Gross Profit $6,000,000 $7,200,000 $800,000
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This note was uploaded on 05/11/2008 for the course BUS 330 taught by Professor Nugent during the Spring '08 term at SUNY Stony Brook.

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chapter 6-10 - Student instructions This worksheet is for...

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