Guillermo

Guillermo

You helped me out a couple of weeks ago- using the version I put together after your help in, an excel file using the attached excel sheet- can you:

a) create an income statement for five years for each scenario (on one sheet for each scenario (hi-tech and broker), present six columns of data- current and Yrs 1-5.. You can use assumptions that parallel the individual assignment--such as 10% growth in sales/ 3% inflation for costs.

b) On the same sheet, for each scenario, create a balance sheet for each of the five forecasted years below the income statement- 

(1) for current assets and current liabilities- calculate account balance as same percent of sales as each line item on 2010 balance sheet to 2010 sales 

(2) for long term assets- assume some investment in building and equipment required to support the sales volume under each scenario 

(3)for long-term debt and common equity- to balance balance sheet ( assets=liabilities + equity) assume that you issue new debt and common stock- decide how much to raise of debt and how much of common stock (Retained Earnings = beg bal +net income - dividends).