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Suppose that in 2011 sales increase by 9.00% over 2010 sales and that 2011 dividends will increase to $111,000. Forecast the financial statements using the
Suppose that in 2011 sales increase by 9.00% over 2010 sales and that 2011 dividends will increase to $111,000. Forecast the financial statements using the forecasted financial statement method. Use the Excel workbook to complete the problem. (Use three (3) decimals in your calculations. Round dollar amounts to the nearest dollar.) Assume the firm operated at full capacity in 2010. Use an interest rate of 10.00%, and assume that any new debt will be added at the end of the year (so forecast the interest expense based on the debt balance at the beginning of the year). Cash does not earn any interest income. Tax rate is 40.00%. Assume that the AFN will be in the form of notes payable
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