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The company Green shows the following income statement and balance sheet in summary (unit SEK million): Income statement Net sales: 500 Cost of goods sold:
The company Green shows the following income statement and balance sheet in summary (unit SEK million): Income statement Net sales: 500 Cost of goods sold: -350 Other operating expenses: -100 Operating profit: 50 Interest expenses: -9 Reported results: 41 Balance sheet Inventories: 200 Accounts receivable: 100 Cash and bank: 20 Total assets: 320 Equity: 170 liabilities: 150 Total equity and liabilities: 320 For the coming year, the following changes are expected to occur: 1. Sales prices increase by 6%. 2. Costs increase by 10%. 3. Average storage time decreases by 26 days. 4. Average customer credit time decreases by 2 days. 5. The loans are repaid in the amount of 30 million SEK. 6. Average interest rate is unchanged. 7. The liquidity requirement is 6% of sales. Your task is to make a forecast of the expected new result and to calculate if it is expected become a financial surplus or deficit and also indicate by how much. All calculations must be reported as well as an overall analysis and explanation of the consequences must be made. The discussion should result in a motivation for the answer.
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