Information available and the percentage-of-sales method

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Prepare a pro-forma statement of cash flows using the latest information available and the percentage-of-sales method, ratio analysis, or vertical or horizontal analysis to calculate the future profit or loss (i.e., create a fictitious scenario for management to use to calculate a "what-if" scenario).

  • Prepare a pro-forma statement for the next three years using the -percentage-of-sales method, ratio analysis, or vertical or horizontal analysis.
  • Create the pro-forma statement of cash flows providing explanation of the method chosen and financial ratios used.
  • Was an inflation rate used? How was the inflation rate determined?
  • Is there a stated interest rate for debt financing? How does this change projections?

Reference no: EM13764442

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