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Proforma Balance Sheet
This refers to the projected balance sheet at the finish of forecasting period. The items in the proforma balance that vary with sales would be determined in any type of the following two (2) ways:
i) % of sales x sales at last year of forecasting (2004); and
ii) Balance sheet item before forecasting in addition with increase in balance sheet item as a result of increase in sales.
Capital Structure Ratio Gearing/Leverage/Capital Structure Ratio The ratio signifies the extent whether the firm has borrowed fixed charge capital to finance the
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