Question: Task Your deliverable will be a Forecasting Report providing upper management with a 5-year balance sheet forecast and income statement. You have been reminded that
Task Your deliverable will be a Forecasting Report providing upper management with a 5-year balance sheet forecast and income statement. You have been reminded that executives are extremely busy; therefore, you must keep the executive Summary that shall accompany your schedules to a maximum of two pages. Criteria Design a spreadsheet and prepare a set of financial statement forecasts for your selected Company for Year +1 to Year +5 using the provided assumptions. Project the amounts in the order presented (unless indicated otherwise), beginning with the income statement and then the balance sheet. For this portion of the problem, please assume that the Company will exercise its financial flexibility with the cash and cash equivalents account to balance the balance sheet. Assume your Company's dividend policy pays 30% of net income. Determine the total dividends the Company could pay each year under this scenario. Identify one potential benefit that increased dividends could create for the Company's financial management. Include these benefits as part of the executive Summary in Part 5. Calculate and compare the return on common equity for the Company using the forecast amounts determined in Requirements 1 for Year +1 to Year +5. Executive Summary of results (not to exceed two pages) I HAVE THE INCOME OF STATEMENT AND THE BALANCE SHEET
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