Module 5 Homework Problems 1) Consider the simplified financial state.docx

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Module 5 Homework Problems 1) Consider the simplified financial statement for the Fire Corporation. The company has a predicted sales increase of 15%, and pays out pays out half of its net income in the form of cash dividends. Costs and assets vary with sales, but debt and equity do not. Prepare a proforma income statement and balance sheet, and determine the external financing needed. FIRE
Jordan Corporation. A 20% growth rate in sales is projected. Prepare a pro forma income statement and balance sheet assuming that costs, assets and accounts payable vary with sales, but notes payable o not. Further assume that the dividend payout ratio remains constant. HEIR JORDAN CORPORATION Income Statement Sales 47,000 Costs 31,300 Taxable income 15,700 Taxes (35%) 5.495 Net Income10.205 Dividends 2.500 RE 7,705 Current Assets Cash A/R Inventory Total HEIR JORDAN CORPORATION Balance

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