Chem-Med Brian Whitney

Chem-Med Brian Whitney - Brian Whitney Bus 171 Prin of...

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Brian Whitney Bus 171 Prin of Financial Management Prof Mary LaPann September 28, 2011 Question 1 Chem-Med’s rate of sales growth in 2007 was 25%. They are projecting sales growth of 40% in 2008,2009, and 2010. Question 2 Chem-Med’s net income growth in 2007 was 50.13%. It is forecasted to be 39.91% in 2008, 20.76% in 2009 and 49.41% in 2010. Projected net income is growing faster and slower depending on the year. It is growing faster in 2006 and 2007. It’s growing at the same rate as sales in 2008. In 2009 the net income is growing slower than sales. Then in 2010 is it growing faster than sales growth. Many different variables can affect these numbers which would be the case in 2008. If you take a close look at the income statement, there is a $500,00 other incurred expense that does not show in any other year. This would most likely be due to an unexpected expense the company had which in turn, reduced the income growth percentage for that year. Question 3
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Chem-Med Brian Whitney - Brian Whitney Bus 171 Prin of...

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