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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 Selling & Admin Expenses Cash Marketable Securities Accounts Receivable Inventory Prepaid Expenses Accounts Payable Accrued Expenses Depreciation Expense Interest Expense Gross Plant & Equipment 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.
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  • Spring '08
  • Nugent
  • Finance, Generally Accepted Accounting Principles, expenses Depreciation expense, forecasting assumptions, bright future corporation, Payable Accrued Expenses

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