Determine the amount of additional financing needed and pro forma financial statements (that is, balance sheet, income statement, and selected financial ratios) for Year 2 under the following conditions: Increase in Sales Increase in Expenses $3,725,000 $3,500,000 Assume the following: The company plans to maintain its dividend payments and long-term debt at the same level in Year 2 as in Year 1. All of the additional financing needed is in the form of short-term notes payable. Levels of cash, accounts receivable, inventories, net fixed assets and accounts payable increase proportionately as sales increase. Round your answers in dollar form to the nearest dollar. Round your answers for financial ratios to two decimal places

Answer rating: 100% (QA)

To determine the additional financing needed and pro forma financial statements for Year 2 we need t... View the full answer