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Thatthe company plans to maintain its dividend payments

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Consider the Industrial Supply Company example (Table 4.4) again. Assume thatthe company plans to maintain its dividend payments at the same level in 2011 asin 2010. Also assume that all of the additional financing needed is in the form ofshort-term notes payable. Determine the amount of additional financing neededand pro forma financial statements (that is, balance sheet, income statement, andselected financial ratios) for 2011 under each of the following conditions:

Increase In Sales Increase In Expenses

a. $3,750,000 $3,750,000

b. $3,000,000 $2,800,000

c. $4,500,000 $4,000,000

 

Reference no: EM13288369

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