In a pro forma balance sheet, what line item would you expect to be constant from year

Question:

In a pro forma balance sheet, what line item would you expect to be constant from year to year in dollar terms and decreasing in terms of percentage of total assets? When would this line item have a significant change in percentage?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Financial Management Core Concepts

ISBN: 978-0133866698

3rd edition

Authors: Raymond M Brooks

See More Books

Question Posted: Oct 31, 2017 08:20 AM

See More Questions

Short-Term Financing Analysis Malone Feed and Supply Company buys on terms of 1/10, net 30, but it has not been taking discounts and has actually been paying in 60 rather than 30 days. Assume that...
Leonard Industries wishes to prepare a pro forma balance sheet for December 31, 2013. The firm expects 2013 sales to total $3,000,000. The following information has been gathered. (1) A minimum cash...
Craig Computers makes bulk purchases of small computers, stocks them in conveniently located warehouses, and ships them to its chain of retail stores. Following is Craigs balance sheet as of December...
You are asked to evaluate the following two projects for Boring Corporation using the NPV method combined with the PI approach, which project would you select? Use a discount rate of 10 percent....
A 68 kg crate is dragged across a floor by pulling on a rope attached to the crate and inclined 15 o above the horizontal. (a) If the coefficient of static friction is 0.50, what minimum force...
You are the accountant at Danier. Refer to Appendix III for Daniers Consolidated Balance Sheets as at June 28, 2014. Your manager has asked you to do the following: a. Calculate the current ratio,...
Give three specialized subclasses for the Student class.
Kite Corporation, a merchandiser, recently completed its calendar-year 2011 operations. For the year, (1) All sales are credit sales, (2) All credits to Accounts Receivable reflect cash receipts from...
Hitzu Company sold a copier (that costs $3,500) for $7,000 cash with a two-year parts warranty to a customer on August 16 of Year 1. Hitzu expects warranty costs to be 4% of dollar sales. It records...
Mr B aged 52 years, has earned rupees 75,00,000 out of his business. His ex-wife gifted him a car worth rupees 8 lakh. He spent a total of rupees 20 lakh during a family trip. He won a lottery of 16...
In a pro forma income statement, why would a finance manager make changes in the prior year's percentages for different line items? Give an example of a line item that you would expect to vary in...
For the prior three years, sales for National Beverage Company have been $21,962,000 (2011), $23,104,000 (2012), and $24,088,000 (2013). The company uses the prior two year's average growth rate to...
Based on 107 students scores on the first examination in a course on business statistics, the following model was estimated by least squares: where y` = students actual score on the examination x1 =...
On July 1, 2015, Wallace Company, a calendar-year company, sold special-order merchandise on credit and received in return an interest-bearing note receivable from the customer. Wallace Company will...
Gap will focus on smaller scale stores Gap has too many 12,500 square feet stores. The target store size is 6,000 to 10,000 square feet, so Gap plans to combine previously separate stores. Some Gap...
I recommend reflecting on your experience with this chapters exercise before continuing. You can reflect about anything you found relevant, but here are some questions you may want to consider: Did...
The ability to learn is a very useful skill, so it is not clear why more organisms have not evolved better learning abilities. One possibility is that learning is energetically expensive, and the...
Determine the value of the parameter $\Theta_{D}$ for liquid $\mathrm{He}^{4}$ from the empirical result (7.4.28).
Information from the shareholders' equity footnote for Mendes Manufacturing follows. Required Prepare the journal entries for 2017 and 2018 to reflect the treasury stock transactions included in the...
The Ranch 888 Noodle Company sells two types of dried noodles:ramen, at $6.50 per box, and chow fun, at $7.70 per box. So farthis year, the company has sold a total of 110,096 boxes ofnoodles,...
Using the operating cash flow information in Problem 12, determine whether Huffman Systems add the home alarm system to their set of products. The manufacturing equipment will be sold off at the end...
Mathews Mining Company is looking at a project that has the following forecasted sales: first-year sales are 6,800 units and will grow at 15% over the next four years (a five-year project). The price...
Miglietti Restaurants is looking at a project with the following forecasted sales: first-year sales quantity of 31,000 with an annual growth rate of 3.5% over the next ten years. The sales price per...
Martinez Company buys merchandise on account from Marigold Company for $592. Martinez sells the goods to Ellis for $900 cash. Use a tabular summary to record the transactions for Martinez Company...
The section has tension and compression steel reinforcement. When the neutral axis depth is at infinity, c = , the section is in uniform compression, all points on the section have 0.003 compressive...
The Big Choo Choo Company (BCCC) owns a rail line from the town of Isolated to the coastal port of Notso. It cost them $20 million to build the rail line in 2016. It is now 2023. The Small Gold...

In a pro forma balance sheet, what line item would you expect to be constant from year

Question:

Step by Step Answer:

Plant Property and Equipment P P E should be constant fro...View the full answer

Financial Management Core Concepts

Students also viewed these Financial Accounting questions