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Question 11 A Corp. Consolidated Financial Statements $ million Income statement Revenues Cost of sales Selling costs Depreciation Operating profit Prior Current year year 900.0

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Question 11 A Corp. Consolidated Financial Statements $ million Income statement Revenues Cost of sales Selling costs Depreciation Operating profit Prior Current year year 900.0 990.0 (540.0) (594.0) (108.0) (118.8) (42.5) (44.0) 209.5 233.2 Interest expense Earnings before taxes (45.0) 164. 5 (45.0) N 188.2 Taxes Net income (543) 110.2 (62.1) 126. 25.2 Dividends 22.0 Dividends 22.0 25.2 Prior year Current year Balance sheet Assets Working cash Excess cash, marketable securities Accounts receivable Inventory Current assets 22.0 170.0 90.0 121.5 403.5 24.2 187.0 99.0 133.7 443.9 Property, plant and equipment Equity investments Total assets 450.0 120.0 973.5 495.0 120.0 1.058.9 Liabilities and equity Accounts payable Short-term debt Accrued expenses Current liabilities 123.8 90.0 88.0 301.8 133.7 90.0 95.0 318.7 Liabilities and equity Accounts payable Short-term debt Accrued expenses Current liabilities 123.8 90.0 88.0 301.8 133.7 90.0 95.0 318.7 210.0 210.0 Long-term debt Newly issued debt Common stock Retained earnings Liabilities and equity 80.0 381.7 973.5 80.0 450.2 1.058.9 Usine the preceding consolidated financial statements for A Corp. and assuming to forecast revenue growth determine the forecastin d o O A. (48.4) B. (47.9) (44.0) (42.5)

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