Construct proforma financial statements of sales method

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Reference no: EM131524694

Question: Garlington Technologies Inc.'s 2006 financial statements are shown below.

Suppose that in 2007 sales increase by 10 percent over 2006 sales and that 2007 dividends will increase to $112,000. Construct the pro forma financial statements using the percent of sales method. Assume the firm operated at full capacity in 2006. Use an interest rate of 13 percent on the debt balance at the beginning of the year. Assume that the AFN will be in the form of notes payable.

Reference no: EM131524694

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