3. Use the information above . What is proforma accounts receivable ?

4. Use the information above . What is proforma gross fixed assets ?

Proforma assumptions: Net sales will decline by 15 percent; interest experse is $83, depreciation expense is 8.5 percent of proformI gross fixed assets. Prepaid expenses in the balance sheet and other income statement expenses would remain at the same proportion of sales as in base year. Proforma rear dP dars, inventorr days and ACP are same as those in base year. Gross fixed asset intestment will increase by $178 and it mill be financed by long-term bank loans. CMILTD for proforma year will be same as in base year Proforma parout ratio is 53