Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

#10: After completing your percentage of sales pro forma balance sheet your total asset value equals $25,000, total debt equals $14,000, and total equity equals

#10: After completing your percentage of sales pro forma balance sheet your total asset value equals $25,000, total debt equals $14,000, and total equity equals $16,000. This indicates that:

a: You need an additional $5,000 of assets to produce the forecasted sales

B: You have spontaneously forecasted $5,000 of funding over and above what is necessary to produce the forecasted sales

C: You have made an error in your forecast as the balance sheet must balance

D: You need to add $2,500 of assets and reduce financing by $2,500

e: None of these

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Finance questions