Question
F. Prepare projected income statements, balance sheets, and statements of cash flow for AMGEN for 2016 and 2017 before obtaining of any additional financing. What
F. Prepare projected income statements, balance sheets, and statements of cash flow for AMGEN for 2016 and 2017 before obtaining of any additional financing. What are the amounts of additional funds needed?
G. Assume that sales are expected to grow 10 percent percent in 2018 (over the 2017 sales level), 5 percent in 2019, and 3 percent in 2020. What will be the maximum amount of additional funds needed during your five-year forecast?
H. In a seperate spreadsheet, assume that you will acquire the amount funds needed in Part F by selling or issuing more common stock and by borrowing from lenders at an 8 percent interest rate. Prepare a second round of projected five-year financial statements showing that the initial financing needed will be obtained equally each year by issuing new stock (50 percent) and by borrowing from lenders (50 percent).
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