Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

a) (40 points) Company would like to grow its sales by 25% from 2016 to 2017, Given the following conditions, produce Znap's proforma statements for

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
a) (40 points) Company would like to grow its sales by 25% from 2016 to 2017, Given the following conditions, produce Znap's proforma statements for 2017: 1. Sales and Costs(COGS&Adm&Dep) grow at 25%. 2. Interest for 2017 is 10% of 2017 Long Term Debt. (You can check to see that interest was 3. 4. 5. 6. 7. 8. 10% of Long Term Debt for 2016 as well.) Tax rate is 20%. Company would like to preserve its dividend policy as in 2016. Company would like to purchase back $50 worth of its own stock in 2017. All accounts on the Assets side grow at the same rate as sales. Accounts Payable grows at the same rate as sales. Company's short term debt (Notes Payable) stays constant and no new stock will be issued in 2017 9. Company meets its external financing need by borrowing long term

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_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

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

Get Started

Recommended Textbook for

Optimization Methods In Finance

Authors: Gerard Cornuejols, Reha Tütüncü

1st Edition

0521861705, 978-0521861700

More Books

Students also viewed these Finance questions