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CASE ANALYSIS - INSPIRON INC. The following comprehensive assessment is based on a continuing case study of Inspiron Inc. The following financial statements have been
CASE ANALYSIS - INSPIRON INC. The following comprehensive assessment is based on a continuing case study of Inspiron Inc. The following financial statements have been provided: PART A 15 Marks Utilize the 2022 financial statements for Inspiron Inc. provided on page 2 and assume that the company is currently operating below capacity. Required: Prepare Pro-Forma statements for the year ending June 30, 2023 (rounding all figures to the nearest dollar) assuming: All costs/income/expenses and net working capital vary directly with sales/revenue. No new equity is raised. Sales are projected to increase by 20%. The tax rate will remain constant. The dividend payout ratio will decrease to 30%. Depreciation Expense will remain unchanged. Clearly state if Inspiron Inc. will require external financing or if the company would have excess financing in 2023, and how much. (15 Marks)
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