After examining patterns from recent years, management found the following regressionestimated relationships between some company balance sheets
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After examining patterns from recent years, management found the following regressionestimated relationships between some company balance sheets and income statement accounts and sales.
The company’s sales for last year were $10 million. The year-end balance sheet is reproduced below.
Management further found that the company’s sales bear a relationship to GNP. That relationship is
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.
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