GROWTH IN SALES: 70%

Use the pro forma approach using percent of sales method and make a one-year financial plan for the company under consideration. The iterations and based on your final pass when the balance sheet is balanced, first comment on the impact of the growth in sales on the balance sheet and income statement of the company. Then, analyze the evolution of the companys key ratios and compare it with status quo.

Assets and liabilities and equities in 2018

Assets		Libailities and equity
Cash & sec.	100	Accts. pay. & accruals	300
Accounts rec.	300	Notes payable	200
Inventories	500	Total CL	500
Total CA	900	L-T debt	600
Net fixed Assets	700	Common stk	300
		Retained Earnings	200
Total assets	1 600	Total claims	1 600

Income statement 2018

Sales	3000
Less: COGS (60%)	1800
SGA costs	600
EBIT	600
Interest	40
EBT	560
Taxes (30%)	168
Net income	392
Dividends (20%)	78,4
Addn to RE	313,6