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Questions Draw up a set of proforma financial statements (in- come statement, balance sheet and cash flow state- ment) for each of the years
Questions Draw up a set of proforma financial statements (in- come statement, balance sheet and cash flow state- ment) for each of the years 2016 through 2020. 1. How large was the dividend you paid on Dec. 31, 2015? 2. Estimate the amount of financing you will need to meet your expansion plans assuming all of your projections are accurate. Assume that this financing will take the form of a line of credit: e.g., you only need to borrow as much as you need to balance the books each year. 3. After you have built the pro formas, please do the following: Assume a growth rate of 3% and a dis- count rate of 15%. (Don't worry about where these numbers come from.) Cal- culate the NPV of the revolutionary en- deavor.
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