Question
Topeka Adhesives Financial Forecasting Two sisters are in the process of negotiating a number of large contracts for the coming year (1996) and product inquires
Topeka Adhesives Financial Forecasting
Two sisters are in the process of negotiating a number of large contracts for the coming year (1996) and product inquires are markedly higher. Sales are expected to increase in the next three years, more than doubling by the end of 1998.Partners estimate sales of $1,933,100 in 1996, $2,609,700 in 1997 and $3,131,600 in 1998.The downside to this growth is that such large growth will require external financing and could cause managerial difficulties.
Forecasting considerations
The table below shows the 1996 pro forma balance sheet and indicates $226,100 needs to be raised.
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