Question: Create a common size balance sheet for 2017 and 2018. (% of Assets) Create a common size income statement for 2017 and 2018 (% of

 Create a common size balance sheet for 2017 and 2018. (%

Create a common size balance sheet for 2017 and 2018. (% of Assets) Create a common size income statement for 2017 and 2018" (% of Sales) Calculate the ROE for 2017 and 2018. Calculate the ROA for 2017 and 2018. Calculate the Profit margin, Total Asset Turnover and Equity Multiplier for 2017 and 2018. (Dupont Analysis) Create Pro Forma Financial Statements for 2019. 1 4 Assumptions for 2019 Income Statement Sales increase Costs/sales Other expenses/sales Depreciation Interest Taxes Retention ratio 10.00% 35.00% 6.00% $182,000 $88,450 34.00% 50% Assumptions for 2019 Balance sheet Accounts receivable Inventory Net fixed assets Accounts payable Notes payable Long-term debt increase of 1% increase of 4% No change from 2016 No change from 2016 decrease of 25% decrease of 1% decrease of 2% 7 Calculate the five ratios for 2019 (based on Pro Forma statements) Create a common size balance sheet for 2017 and 2018. (% of Assets) Create a common size income statement for 2017 and 2018" (% of Sales) Calculate the ROE for 2017 and 2018. Calculate the ROA for 2017 and 2018. Calculate the Profit margin, Total Asset Turnover and Equity Multiplier for 2017 and 2018. (Dupont Analysis) Create Pro Forma Financial Statements for 2019. 1 4 Assumptions for 2019 Income Statement Sales increase Costs/sales Other expenses/sales Depreciation Interest Taxes Retention ratio 10.00% 35.00% 6.00% $182,000 $88,450 34.00% 50% Assumptions for 2019 Balance sheet Accounts receivable Inventory Net fixed assets Accounts payable Notes payable Long-term debt increase of 1% increase of 4% No change from 2016 No change from 2016 decrease of 25% decrease of 1% decrease of 2% 7 Calculate the five ratios for 2019 (based on Pro Forma statements)

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