Constructing Pro-Forma Statements - Assignment Due Date, Monday, 9/2, 10 PM PST
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assignment_2_instructions.docxConstructing Pro-Forma Statements
For the following year, construct a pro-forma income statement and a pro-forma balance sheet for the company, using the assumption that sales will increase 20% in the first quarter and decrease by 10% in the third quarter. Sales will remain flat in the second and fourth quarters.
In addition, submit a three-page financial analysis of the company's current condition.
Submit the original company statements you researched, the pro-forma statement. The analysis should be a Microsoft Word document, formatted in Times New Roman 12 point font, double- spaced. Ensure you use the current APA standards when formatting your paper.
All written assignments and responses should follow APA rules for attributing sources (must be from cases and online required readings) and below Grading Criteria:
|
Grading Criteria |
Maximum Points |
|
Researched a company and presented its financial statements |
8 |
|
Constructed a pro-forma income statement based on new sales assumptions |
12 |
|
Constructed a pro-forma balance sheet based on new sales assumptions |
12 |
|
Submitted financial analysis of chosen company |
8 |
|
Wrote in a clear, concise, and organized manner; demonstrated ethical scholarship in accurate representation and attribution of sources, displayed accurate spelling, grammar, and punctuation. |
4 |
|
Total |
44 |
Required Readings :
Case studies in finance: Managing for corporate value creation (see attached)
1. Warren E. Buffett, 2005
2. Bill Miller and Value Trust
3. Ben & Jerry's Homemade
4. The Battle for Value, 2004: FedEx Corp. vs. United Parcel Service, Inc.
Online Reading
1. Harbert, T. (2005, January). Pro forma earnings are alive and well. Electronic Business, 31(1), 14. (AN 15602992).
2. Weaver, S. P. (2005, April). Fraud in a financial statement audit. Benefits & Compensation Digest, 42(4), 24-27. (AN 16598342).
