You have just completed the first year of operation for your business and have the following information:
Question:
a. Using this data, construct an actual income statement for this year and a pro forma income statement for next year.
b. By what percentage did your net income change?
c. What are your current profit margin and your pro forma profit margin?
d. In your business, assets and liabilities have historically varied with sales. Assets are usually 80 percent of sales, and liabilities are usually 55 percent of sales. You anticipate that you will have no owner payout of net profit. Using the percentage of sales method, determine if any additional financing is needed for your business next year.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Question Posted: