C use the forecasted financial statement method to

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c. Use the forecasted financial statement method to forecast Upton’s balance sheet for December 31, 2011. Assume that all additional external capital is raised as a bank loan at the end of the year and is reflected in notes payable (because the debt is added at the end of the year, there will be no additional interest expense due to the new debt.) Assume Upton’s profit margin and dividend payout ratio will be the same in 2011 as they were in 2010. What is the amount of notes payable reported on the 2011 forecasted balance sheets? (HINT: You don’t need to forecast the income statements because you are given the projected sales, profit margin, and dividend payout ratio; these figures allow you to calculate the 2011 addition to retained earnings for the balance sheet.)
FINANCIAL FORECASTING 6
FINANCIAL FORECASTING 7 References Brigham, E. F. (2012). Financial management: Theory and practice . (13 ed.). South Western Educational Publishing

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