Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. question 4 (financial planning and ratio analysis)

Question 4 (Financial Planning and Ratio Analysis) 25 Marks Consider the following simplified Financial Statement...

60.1K

Verified Solution

Question

Finance

image
image
Question 4 (Financial Planning and Ratio Analysis) 25 Marks Consider the following simplified Financial Statement Income statement Sales Cost of sales $32,000 24,400 Net Income 7,600 Balance Sheet $1,000 Cash Accounts Receivables Inventory 5,000 Net Fixed Assets $500 Accounts payables 2,000 Long term debt 2,000 Equity 12,000 750 $1,000 Cash Accounts Receivables Inventory 5,000 Net Fixed Assets 7,500 Total Assets 15,000 $500 Accounts payables 2,000 Long term debt 2,000 Equity 12,000 Total Liabilities and Equities 15,000 Required: 1) Create a proforma Income statement (Assume a 10% growth rate) 2) Create a proforma Balance Sheet (Assume a 10% growth rate for assets and liabilities) 3) Calculate the following Ratios from the simplified financial statements above): a) Profit Margin b) Return on Assets c) Return on Equity d) Current Ratio e) Quick Ratio 100%

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Advance Math
1.2K views

solve using method of undetermined coefficients. y''-5y'-4y=cos2x

Basic Math
1.2K views

Given two circles C1 and C2 in the same plane where C1 has a radius of...

Accounting
1.2K views

Marvel Parts, Inc., manufactures auto accessories. One of the company’s products is a set of seat...

Biology
1.2K views

Exam Question 16 For the following Tertiary Structure of a protein label each force holding...

Biology
1.2K views

C A What phase of mitosis is shown in the image labeled D B D

Physics
1.2K views

2 A thin uniform conducting rod MN of length m starts sliding from 3 rest...

Physics
1.2K views

A block of mass m is kept on smooth horizonal surface and connected with two...

Physics
1.2K views

6 An ice cube contains a large air bubble The cube is floating on the...

Basic Math
1.2K views

Solve the initial value problem 8y 2y y 0 subject to y 0 0 2...

Basic Math
1.2K views

Question 12 Subtract the following 10 11 10 11 10 11 10 11 Next Question

Accounting
1.2K views

Ziegler Inc. has decided to use the high-low method to estimate the total cost...

Accounting
1.2K views

Need help with excel formulas please 1 B C D E F G H...