Proforma Income Statement
Not what you're looking for?
Assumptions for status quo pro forma.
â?¢ Sales growth 1.5%
â?¢ Use %-of-Sales for COGS, GA&S Expense, Depreciation, and short-term assets and liabilities.
â?¢ Dividends will be the same dollar amount as 2009.
â?¢ Tax rate is 32%
â?¢ $500,000 of long-term debt will be repaid during 2010
â?¢ Short-term debt (Bank Loan) is at 7.5% and the long-term debt is at 9%. Compute Interest Expense by assuming that any changes to these balances occur half-way through the year.
Assumptions for new credit policy pro forma.
â?¢ Sales growth 6%
â?¢ Bad debt expense will be 5% of new Sales (over the 1.5% planned growth)
â?¢ Use %-of-Sales for COGS, GA&S Expense, Depreciation, and short-term assets and liabilities.
â?¢ Dividends will be the same dollar amount as 2009.
â?¢ Tax rate is 32%
â?¢ $500,000 of long-term debt will be repaid during 2010
â?¢ Short-term debt (Bank Loan) is at 7.5% and the long-term debt is at 9%. Compute Interest Expense by assuming that any changes to these balances occur half-way through the year.
All else will be a percentage of sales. Calculate for 2 years out.
Purchase this Solution
Solution Summary
The solution explains how to prepare a proforma income statement given the assumptions.
Purchase this Solution
Free BrainMass Quizzes
MS Word 2010-Tricky Features
These questions are based on features of the previous word versions that were easy to figure out, but now seem more hidden to me.
Transformational Leadership
This quiz covers the topic of transformational leadership. Specifically, this quiz covers the theories proposed by James MacGregor Burns and Bernard Bass. Students familiar with transformational leadership should easily be able to answer the questions detailed below.
Team Development Strategies
This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.
Business Processes
This quiz is intended to help business students better understand business processes, including those related to manufacturing and marketing. The questions focus on terms used to describe business processes and marketing activities.
Understanding Management
This quiz will help you understand the dimensions of employee diversity as well as how to manage a culturally diverse workforce.