Question: hi i need help with a proforma question thank you Proforma assumptions: Net sales will decline by 15 percent; interest expense is 58.3 ; depreciation
hi i need help with a proforma question thank you
Proforma assumptions: Net sales will decline by 15 percent; interest expense is 58.3 ; depreciation expense is 8.5 percent of proforma gross fixed assets. Prepaid expenses in the balance sheet and other income statement expenses would remain at the same proportion of sales as in base year. Proforma year AP days, inventory days and ACP are same as those in base year. Gross fixed asset investment will increase by $178 and it will be financed by long-term bank loans, CMLTD for proforma year will he same as in base year. Proforma payout ratio is 53 percent. Proforma net income is $567.7. Minimum cash ratio is 1.25 percent
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