Assignment- Pro Forma Statements

Assignment- Pro Forma Statements - C. Cash $ 5.75 Accounts...

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A. RNF=A/S - L/S-PS2 .85 -.25-.06 (1-5) $12.75 MILL- $3.75 MILL - $3.45 MILL +$5.55 MILLION B. If Landis reduces the payout ratio; the company will retain more earnings and need less external funds. A slower growth rate means that fewer assets will have to be financed and in this case, less external funds would be needed. A declining profit margin will lower retained earnings and force Landis Corporation to seek more external funds
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Unformatted text preview: C. Cash $ 5.75 Accounts Payable $17.25 Accounts Receivable 17.25 Accruals 11.50 Inventory 28.75 Notes Payable. 17.55 1 Net Fixed Assets 46.00 Long-Term Bonds 5.00 Common Stock 10.00 _____ Retained Earnings 36.45 2 $97.75 $97.75 1 Original notes payable plus required new funds. This is the plug figure. 2 2009 retained earnings (beginning of 2009) + PS 2 (1-D) or $33 mil + $3.45 mil...
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This note was uploaded on 05/07/2010 for the course ACCOUNTING ACC225 taught by Professor Professor during the Spring '10 term at University of Phoenix.

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