BlackBerry Manufacturing Ltd. is a beautification soap bar producer. The company hits a record sales target...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
BlackBerry Manufacturing Ltd. is a beautification soap bar producer. The company hits a record sales target in 2021. By following the previous year's sales record, the management decides to expand business volume by 25% in 2022. By focusing on the expansion strategy of the organization, the management asks the finance manager to develop the Pro-forma Income Statement and Balance Sheet for 2022 by analyzing 2021 both financial statements and finding out the various source of funds to drive the expected business growth. The management also decides to keep the current ratio will not below 2.25 and the total debt ratio must not rise above 45% of total assets; also, the dividend will be paid to shareholders, and the rest of the amount will be retained for business growth. After analyzing both financial statements of the organization, the finance manager will develop the projected Income Statement and Balance Sheet for 2022 by considering 25% growth potential. BlackBerry Manufacturing Ltd. Income statement 2021 Operating revenue Less: Cost of Good Sold Gross Revenue Operating expenses Administrative cost Salary and wages Depreciation Other overhead costs Total Operating Expenses Revenue before Interest & Tax Interest Paid Revenue before Tax BDT (million) 2635.00 1238.00 1397.00 85.00 235.00 101.00 25.00 496.00 901.00 73.00 828.00 BlackBerry Manufacturing Ltd. is a beautification soap bar producer. The company hits a record sales target in 2021. By following the previous year's sales record, the management decides to expand business volume by 25% in 2022. By focusing on the expansion strategy of the organization, the management asks the finance manager to develop the Pro-forma Income Statement and Balance Sheet for 2022 by analyzing 2021 both financial statements and finding out the various source of funds to drive the expected business growth. The management also decides to keep the current ratio will not below 2.25 and the total debt ratio must not rise above 45% of total assets; also, the dividend will be paid to shareholders, and the rest of the amount will be retained for business growth. After analyzing both financial statements of the organization, the finance manager will develop the projected Income Statement and Balance Sheet for 2022 by considering 25% growth potential. BlackBerry Manufacturing Ltd. Income statement 2021 Operating revenue Less: Cost of Good Sold Gross Revenue Operating expenses Administrative cost Salary and wages Depreciation Other overhead costs Total Operating Expenses Revenue before Interest & Tax Interest Paid Revenue before Tax BDT (million) 2635.00 1238.00 1397.00 85.00 235.00 101.00 25.00 496.00 901.00 73.00 828.00
Expert Answer:
Related Book For
Financial Reporting Financial Statement Analysis and Valuation a strategic perspective
ISBN: 978-1337614689
9th edition
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Posted Date:
Students also viewed these finance questions
-
After Dans analysis of East Coast Yachts cash flow (at the end of our previous chapter), Larissa approached Dan about the companys performance and future growth plans. First, Larissa wants to find...
-
The following trial balance was drawn from the records of Havel Company as of October 1, 2018: Required a. Divide the class into groups, each with four or five students. Organize the groups into...
-
In Problem 10.16, we projected financial statements for Walmart Stores, Inc. (Walmart) for Years +1 through +5. The data in Exhibits 12.17-12.19 (pages 948-950) include the actual amounts for 2012...
-
Shortly after Murray began working in the tax department of the public accounting firm of Dewey, Cheatham, and Howe, he was preparing a tax return and discovered an error in last year's work papers....
-
The following are several independent events: 1. A partnership is preparing to become a corporation and sell stock to the public. At this time, it is decided to switch from accelerated to...
-
What are the three ways auditors respond to fraud risks?
-
Determine if the mixed method aspect is concurrent, sequential,, or nested. Develop a hypothetical research scenario that would necessitate the use of the Mixed Method A-B-A Design. The research will...
-
After watching the video on expatriates, discuss the following: 1. What kind of staffing approach is being used by Dubai? Explain. 2. What does Kevin ONeal, as an expatriate, bring to Dubai? 3. What...
-
Construct and group the following data into classes. Calculate the frequency by classes, relative frequencies and cumulative frequencies. A. Calculate the size of each class (use 6 classes) a....
-
A car is moving with a velocity of 20 m/s when the brakes are applied and the wheels lock (stop spinning). The car then slides to a stop in 40 m. Find the coefficient of kinetic friction between the...
-
Assume that you are a loan officer. You are considering making a loan to a retail companyany such company that is actually located near your home. You want to use as collateral as many of the...
-
Strobeck Quads sells 75 used four wheelers each month for $300 each. The variable cost per unit is $200, and Quad's fixed costs are $4,200 per month. What is the contribution margin ratio?
-
Parker, a Canadian national and university student, was sent to India as part of a cultural exchange program. Upon arrival in India, Parker did not respond to the host who greeted Parker by joining...
-
1- Using backward substitutions, establish a closed form of T(n) for a properly chosen subset of natural numbers, where (T(n) = T ([2]) + logn {T(n) = T(1) = 1 2- From the closed form you obtained,...
-
"Wilson Machine Tools is considering a high - tech computer - controlled milling machine at a cost of $ 8 2 , 0 0 0 . The cost of installing the machine, preparing the site, wiring, and rearranging...
-
A 6 0 0 N weight is hanging from the end of a cable with a total volume of 0 . 5 m ' 3 , causing a stress of 2 0 , 0 0 0 / m ' in the cable. If the Young's modulus of the cable is 3 6 , 0 0 0 N / m '...
-
Plot each point and form the triangle ABC. Verify that the triangle ABC is a right triangle. Find its area. A=(-1,12) B (6,7) C=(1,0) Choose the correct graph below that shows points A, B, C, and...
-
A firm has the following balance sheet: Assets Cash Accounts receivable Inventory Plant and equipment $ 15,000 150,000 92,000 170,000 $427,000 Liabilities and Equity Accounts payable Long-term debt...
-
Identify where the cash flow effect of each of the following transactions is reported in the statement of cash flows: operating, investing, or financing section. State the direction of each change....
-
Three years of combined data for two firms appear below (in millions). One of these firms is FedEx, a relatively high-growth firm that provides courier services, and the other is Kellogg Company, a...
-
Some asset valuations using historical costs are highly relevant and very reliable, whereas others may be reliable but lack relevance. Some asset valuations based on fair values are highly relevant...
-
Using the data from Table 2, construct a \(95 \%\) confidence interval estimate of the mean difference, \(\mu_{d}\). By Hand Approach Step 1 Compute the differenced data. Because the sample size is...
-
Problem Decide whether the sampling method is independent or dependent. Then determine whether the response variable is qualitative or quantitative. (a) Joliet Junior College decided to implement a...
-
In the Spacelab Life Sciences 2 payload, 14 male rats were sent to space. Upon their return, the red blood cell mass (in milliliters) of the rats was determined. A control group of 14 male rats was...
Study smarter with the SolutionInn App