The firm expects to struggle to retain its share of the market next year. Relative to sales, the firm will maintain its level of marketing expenditures (i.e. SG&A). The firm is in a shrinking market. The trend depicted in the numbers below are expected to continue into the next year. The new head of the firms marketing department forecasts a 5% growth in sales despite the market data. Separately, the firm has been focusing on operating efficiencies and expects to reduce its cost relative to sales by 5 percent. Interest rates are rising, but this should only affect the firms short-term debt. No additional borrowing are planned, and the firm owns zero marketable securities. The firm plans to continue is practice of increasing dividends paid per share by $0.10 on the 200000 outstanding shares of common equity. Depreciation expenses for 2019 are projected to be $10400.

practices discussed in class, use the information below to develop a forecast for the Income Statement of dry cleaning firm, Greedy Gecko's Garments (ticker = GCKO). The firm expects to struggle to retain its share of the market next year. Relative to sales, the firm will maintain its level of marketing expenditures (i.e., SG&A). The firm is in a shrinking market. The trend depicted in the numbers below are expected to continue into the next year. The new head of the firm's marketing department forecasts a 5% growth in sales despite the market data. Separately, the firm has been focusing on operating efficiencies and expects to reduce its costs relative to sales by 5 percent. Interest rates are rising, but this should only affect the firm's short-term debt. No additional borrowings are planned, and the firm owns zero marketable securities. The firm plans to continue its practice of increasing dividends paid per share by $0.10 on the 200,000 outstanding shares of common equity. Depreciation expenses for 2019 are projected to be $10,400. Fill in each of the blanks in the "2019 Pro Forma" column below. Present each entry to the nearest dollar (i.e., do not include decimal places). Be sure to identify and discuss, if needed, any assumptions you make in the process. a Has the firm improved the effectiveness of its cost control efforts (a component of the Du Pont analysis)? Your response should include both quantitative and discussive components. b) USEFUL DATA: 2018 balance Matures $80,000 $45,000 $240,000 Debt obligations Line of credit Fixed rate loan Bonds, fixed rate Industry sales, total, in $millions