Question
Please read the assignment carefully. Prepare proforma forecasts of financial statements of Simple, Inc for two years, 202 1 and 202 2 . What are
Please read the assignment carefully.
Prepare proforma forecasts of financial statements of Simple, Inc for two years, 2021 and 2022. What are the companys forecasted Net Earnings (profit/loss after tax) and additional financing requirements (overdrafts) in 2021 and in 2022?
Assumptions: in 2021 and 2022, sales will grow at 10% per year, CGS will equal 42% of sales, SGA will equal 48% of sales, DRO and DPO will be maintained at 30 days, while DSI will be maintained at 100 days. All other accounts will be maintained at ratios to sales similar to those during 2020.
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Financial management theory and practice
Authors: Eugene F. Brigham and Michael C. Ehrhardt
13th edition
1439078106, 111197375X, 9781439078105, 9781111973759, 978-1439078099
