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question #3 3) Allen Products has the following cash flow statement for for December 31, 2020. Using the pro forma income statement and balance sheet
question #3
3) Allen Products has the following cash flow statement for for December 31, 2020. Using the pro forma income statement and balance sheet your produced, complete a pro forma cash flow statement as well. (25 points) 1) Allen Products, Inc. wants to project their eamings and income for 2021. Allen's income statement for the most recent year follows. Use the percent of sales method, the income statement below, and the sales revenue estimate of $107,250 to develop a pro forma income statement for the coming year. The interest expense is expected to be $3,500 next year (25 points). 2) Allen Products has the following balance sheet for December 31,2020. Fixed and current assets are fuly utilized and will grow in lines with sales, and the sales/assets and sales/spontaneous liablities ratios will remain constant. Depreciation expense will be $1,000 for 2021. If the firm requires additional funding, they will do that through their line of credit. Produce their pro forma and determine how much will they need to borrow [ff anv]? (SO points) Step by Step Solution
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