analysis - Financial Statement Summary The hypothetical...

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Financial Statement Summary The hypothetical modeling exercise was designed to encourage students to extrapolate and use financial ratio`s both to forecast financial statements and decide on the financial viability of the hypothetical company. The provided financial ratio`s allowed the team to develop a comprehensive pro-forma idea of how the hypothetical company could develop. The financial statements were generated over the period of 2007 – 2012. The pro-forma balance sheets reveal an optimistic situation. Accounts receivable and inventory grow at a relatively slow pace when compared to cash and other assets. The company grows from $67.5 million to $146.1 million in just five short years, indicating fast-paced expansion, with financial ratio`s staying fairly constant. Retained earnings quickly change from negative to positive, and also grow exponentially over the years. Equity grows from $33.80 million $77.90 million, roughly doubling.
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This note was uploaded on 02/09/2012 for the course ECON 440 taught by Professor Fenn during the Spring '11 term at American Internation College.

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analysis - Financial Statement Summary The hypothetical...

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