Prepare the pro-forma income statement and balance sheet

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Reference no: EM131085521

Here is the income statement and balance sheet of the Conwell Inn last year. In the next year, we predict a sales increase of 20% next year. It is assumed that dividend payout ratio will remain the same next year, and to increase sales, new rooms should be added for 2,000k, to be depreciated over 10 years.

Prepare the pro-forma income statement and balance sheet for the next year, and calculate the EFN.

Reference no: EM131085521

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