Explore BrainMass
Share

Pro-Forma Balance Statement

This content was STOLEN from BrainMass.com - View the original, and get the already-completed solution here!

Attached is a financial analysis of Chipotle Mexican Grill, Inc. I was wondering if someone could please create a corresponding pro-forma balance statement. An example of what a corresponding pro-forma balance statement might look like is also attached, designated only by the Excel sheet with two dashes (--) next to the title of the sheet at the bottom of the page. Note: this is not homework, as I graduated four years ago and school is out anyway. It is, however, part of a new investment strategy for 2009. Thanks!

Analysis only has to go back to 2005 (i.e. 2005, 2006, and 2007) and go forward to 2010 (i.e. 2008, 2009, and 2010)

Some of the resources I've been using are

hoovers.com
User name: afreezy
Password: knockout

and

Wright Reports: http://wrightreports.ecnext.com/comsite5/bin/comsite5.pl?page=reading_room

Username: WI668255
Password: yI76zO

and

finance.yahoo.com

and

http://www.reuters.com/finance/industries

© BrainMass Inc. brainmass.com October 25, 2018, 12:15 am ad1c9bdddf
https://brainmass.com/business/capital-asset-pricing-model/pro-forma-balance-statement-221529

Attachments

Solution Summary

The solution explains how to prepare a Pro-Forma Balance Statement

$2.19
See Also This Related BrainMass Solution

Pro forma balance sheet, income statement, and selected ratios

I need assistance formulating pro forma financial documents and calculating NPV IRR and payback periods please provide instruction using Microsoft Excel.

1)Given the information below, utilize the percent of sales method to prepare a pro forma balance sheet, income statement, and selected ratios.

1.Sales will increase by 25% next year.
2.The following balance sheet items will increase in direct relation to sales:
a.Cash
b.Accounts Receivable
c.Inventory
d.Fixed Assets
e.Accounts Payable
3.Management forecasts that Notes payable will need to increase by $1,000,000 to support the increase in sales.
4.Management forecasts that Earnings after Taxes will be $2,750,000 next year.
5.The company intends to pay the same amount of dividends next year.

See attachment

2)Stephen Company currently has two mutually exclusive projects under consideration:
Year Project A Project B
0 -30,000 -60,000
1 10,000 20,000
2 10,000 20,000
3 10,000 20,000
4 10,000 20,000
5 10,000 20,000

1. Calculate the following values for each project using the time value tables: (Assume a 14%
discount rate)
? NPV
? IRR
? Payback period

2. Which project would you choose? Why would you choose it?

View Full Posting Details