Prepare the pro-forma financial statements

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A company's financial manager believes that sales in 2021 could rise by as much as 20% or by as little as 10%.

Problem 1: Prepare the pro-forma financial statements under the two assumptions and calculate external financing required. Then, determine the sustainable growth rate.

Problem 2: Calculate these facters IN 2021 under 2 assumption

In 2020

Sales $6,500

COGS $3,500

SG&A $2,350

Interest $130

Tax $208

Dividends $208

Cash $100

A/R $400

Inventory $650

PP&E $2,600

A/P $500

Long-term Debt $1,300

Common Shares $100

R/E= ?

Reference no: EM132904694

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