Preliminаrу Summаtive Assignment 2. Max: 750 wоrds plus salient tables.
Students are required to: a) develop a “common size” income statement and balance sheet based on their assigned firm’s performance for the most recent 5-year period; b) Generate pro-forma financial statements for the coming year. In doing so, assume that the firm will encounter a 5% rate of sales growth in the next financial year, that the firm’s working capital will reflect the growth in sales, that investment will exceed depreciation by five per cent and that the firm will neither borrow nor lend in the coming year.