Question: The below assumptions apply to Years 1 - 5 . The year 0 ratios do not need to conform to the predicted ratios for the

The below assumptions apply to Years 1-5. The year 0 ratios do not need to conform to the predicted ratios for the forecast year. "NOTE: For the depreciation rate, interest rate on debt and linterest paid on cash 5 marketable securities, use average of present year and year prior.
\table[[PROFORMA MODEL INPUT/ASSUMPTIONS FOR YEARS 1-5],[Sales growth,20%],[Current assets/Sales,20%],[Current liabilities/Sales,8%],[Net fured arsets/5ales,78%],[Costs of goods sold/Sales,50%],[Depreciation rate. "Use everage of year of and year prior,10%],[Interest rate on debt. "Use average of year of and vear prior,7.00%],[Interest paid on cash Ea marketable securities.,]]
The below assumptions apply to Years 1 - 5 . The

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!