After examining patterns from recent years, management found the following regressionestimated relationships between some company balance sheets

Question:

After examining patterns from recent years, management found the following regressionestimated relationships between some company balance sheets and income statement accounts and sales.

image text in transcribed

image text in transcribed

The company’s sales for last year were $10 million. The year-end balance sheet is reproduced below.

image text in transcribed

Management further found that the company’s sales bear a relationship to GNP. That relationship is

image text in transcribed

The forecast of GNP for next year is $2.05 trillion. The firm pays out 34 percent of net profits after taxes in dividends.
Create a pro forma balance sheet for this firm.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question
Question Posted: