Questions

PART ONE:

a. What was PMSSIs rate of sales growth in 2014?

b. What is it forecasted to be in each of the pro-forma years (2015, 2016, 2017)?

PART TWO:

a. What was its net income growth 2014?

b. What is the forecasted net income growth to be in 2015, 2016, and 2017?

c. Is projected net income growing faster or more slowly than projected sales?

d. After computing these values, carefully review the 2015 income statement data to see

if you want to make any adjustments.

Figure 1 PMSSI Income Statement 000s) Current Year Pro-Forma Statements 2012 2013 2014 2015 20162017 Net sales $3051$3814 040 74 $77 $7475 $1 goods sokd 2154 056 152 2645 and admin expenses income (expenses) ating 51 201 476 Interest expense 434 axes 899 axes 143 (40% in 2013; 33% thereafter) Net income vidends ncrease in retained Average number of shares* Earnings per share Other income (expenses) CanMedSup in settlement of their suit. earnings 1150 669 $0.04)$ s 0.49 fers to extraordinary gains and losses. I 5 $600,000 is expected Shares are not publicly tr