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Forecast the financial statements for Year 6 based on the Year 5 historic financial statements and the assumptions listed below. Then answer the questions
Forecast the financial statements for Year 6 based on the Year 5 historic financial statements and the assumptions listed below. Then answer the questions that follow. 1. Sales growth = 5% 2. Cost of debt = 5.75% 3. Tax rate = 29% 4. Depreciation rate = 15.37% 5. CAPEX = $190,605 6. Accounts held constant: goodwill & intangibles, short-term debt, other current liabilities, common stock 7. Long-term debt is the plug account. 8. No dividends
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