Question: Hey I need help with this. It will be greatly appreciated. Thank-You. Larime Corp is forecasting 20X2 near the end of 20X1. The estimated year-end
Larime Corp is forecasting 20X2 near the end of 20X1. The estimated year-end financial statements and a worksheet for the forecast follow. Management expects the following next year. An 8% increase in revenue. Price cutting will cause the cost ratio (COGS/sales) to deteriorate (increase) by 1% (of sales) from its current level. Expenses will increase at a rate that is three quarters of that of sales. The current accounts will increase proportionately with sales. Net fixed assets will increase by 55 million. All interest will be paid at 12%. Federal and state income taxes will be paid at a combined rate of 43%. Make a forecast of Larime's complete income statement and balance sheet. Work to the nearest thousand dollars
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