GIven the assumption that Jants and Palmer have made, prepare a pro forma income statement and balance sheet for 2014. Assume that the line of credit provided by the bank will be needed for a full year

Using the finacial ratios presented in Chapter 10, compare AShely Palmers ratios over time, including the pro forma ratios for 2014. If the bank requires a current ratio of atleast 1.5 and a debt ratio not to exceed 55 percent, can the owners expect to be able to honor these covenants?

Prepare a statement of cash flows for 2013 and 2014 projections. What did you learn from these statements?