Please answer the following questions on Alliance Concrete. List each question followed by your answer below the question. Note that question 1 requires you to do a financial projection of Alliance Concretes 2006 financial statements (using Excel).

What is your best estimate of the 2006 financial statements? As a starting point assume:

Alliance makes the expected $3 million dividend payment to National

Alliance makes the $16.0 million capital expenditure

Hence, the balance sheet will be balanced by adjusting the amount of the bank loan.

Note: State your forecast assumptions in detail so I can understand how you arrived at your forecast.