Question: Question1 In preparing pro forma income statements, describe THREE(3) important procedures for checking the reasonableness of your projections, and explain why the procedures are important

Question1

In preparing pro forma income statements, describe THREE(3) important procedures for checking the reasonableness of your projections, and explain why the procedures are important for reasonableness checks.(15 marks)

Question2

You are given the following data for Good Company Inc. for 2017, 2018, and 2019 (amounts in thousands).

2017

2018

2019

Net income

RM345

RM402

RM445

Average number of common shares outstanding

135

134

132

Average common shareholders' equity

RM1231

RM964

RM735

Interpret your findings for both ROCE and EPS. In your interpretation, you need to describe and explain the changes of ROCE and EPS over the years. At last, briefly discuss the performance of the company based on your observation

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

financial SUBDOMAINS: 325.4 COMMUNICATING EFFECTIVELY IN ORGANIZATIONS 326.1 MANAGING INTERNAL COST & CONTROLLING FINANCES 326.2 MANAGING CAPITAL & FINANCIAL ASSETS 326.4 MANAGING ENTERPRISE RISK &...

MARK X COMPANY (A) Mark X Company manufactures farm and specialty trailers of all types. More than 85 percent of the companys sales come from the western part of the United States, particularly...

Hello! I have to hand in the filled in proforma tables of the Income Statement and Balance Sheet and to write at most 3 pages what I would do and how I would decide as Karen Dennison. It's due on...

The scribes of ancient Egypt were the forerunners of today's accountants. a. True b. False Possible Exam 1 Questions Chapter 1: 3. The scribes of ancient Egypt were the forerunners of today's...

1. From the scenario, cite your forecasting conclusions that support TFC?s decision to expand to the West Coast market. Speculate as to whether or not the agency conflict discussed in the scenario...

i got 7 questions in the assignment in the PDF file on P16-17 They are all about the case story The total of the words are 1500 words without any format QUEENSLAND UNIVERSITY OF TECHNOLOGY QUT...

10-K Ford Motor Company Review Ford Motor Company's Form 10-K for 2012. Explain the purpose of a company?s 10-K and how it interprets the firm?s financial strength. Write a description of three...

My company is Ford Motor Company. Comapny ticker- F -All students are being assigned an individual company to prepare a stock valuation model, which is to be based on material covered in Chapters...

PLEASE COMPLETE NO LATER THAN 10/28 @3:30PM Each question(1,2,& 3) must be a minimum of 200 words. Please EXPLAIN answers in FULL detail and make answers knowledgeable based off the attached reading,...

The Crazy Eddie fraud may appear smaller and gentler than the massive billion-dollar frauds exposed in recent times, such as Bernie Madoffs Ponzi scheme, frauds in the subprime mortgage market, the...

Because management operates the business on a daily basis, they know more about the company's transactions and related assets, liabilities, and equity than the auditor. For example, it is extremely...

Fleming laboratories. Inc.produces an antibiotic product in its three producing departments.The following quantitative and cost data have been madeavailable. Blending Testing Terminal Production...

lim N 3 N k = 0 N - 1 ( 1 1 3 k N )

QUESTION 19 For the stroboscopic analysis of a uniformly accelerated/decelerated motion to be possible, the motion must be: a. uniform only. b. uniformly accelerated only. . c. uniformly decelerated...

Find the expression for the electron's resonance frequency using F=ma equation, in which the polarization is P=-ne and the depolarization field would be E = - 47P 3 4ne? (a) o 3m 4 (b) o 4? (c) o 3m...

QUESTION 5 A boat strives to cross a river along its shortest distance (perpendicularly to the direction of flow), at a speed of 1.5 m/s whilst the river is flowing at 1 m/s. At what angle from the...

QUESTION 21 A person is pushing horizontally on a box with a constant force, causing it to slide across the floor with a constant speed. If the person suddenly stops pushing on the box, the box will:...

Determine if the overhead allocated to the product relates to a single plantwide overhead rate method, multiple production department factory overhead rate method, or activity-based costing...

Suppose that 20% of the 10,000 signatures on a certain recall petition are invalid. Would the number of invalid signatures in a sample of size 1000 of these signatures have (approximately) a binomial...

Exit polling has been a controversial practice in recent elections, because early release of the resulting information appears to affect whether or not those who have not yet voted will do so....

Suppose you want to relate a random variable y to two independent variables 1 x and 2 x . The multiple regression model is with the mean value of y given as This equation is a three-dimensional...