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Please develop a pro-forma financial statement for Nelson Nurseries using percentage of sales approach for the year 2021. Assume that Roger grows revenues by 30%,
- Please develop a pro-forma financial statement for Nelson Nurseries using percentage of sales approach for the year 2021. Assume that Roger grows revenues by 30%, and determine the AFN for Nelson nurseries. Make sure to state all/any assumptions you make.
- Assume the Collection period, Days in Inventory and Days in payables remain unchanged from 2020 to 2021. How does this change your AFN calculations?
- Where does all of Nelson's cash go? Calculate the FCF, the Cash Conversion cycle and NWC to help in answering this question.
- How does the business end up in this problem with their high profitability? What is the difference between cash and profits? How can a business be profitable and have cash flow problems?
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Corporate Finance
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe
10th edition
978-0077511388, 78034779, 9780077511340, 77511387, 9780078034770, 77511344, 978-0077861759
