Pro forma

Using Budgets and Pro-Forma Statements to Plan Funding: The pro forma statements and budgets were instrumental in determining what additional measures needed to be taken to ensure progress within the company. By reviewing the pro-forma statements I was able to determine that I needed to raise the price of my product due to the fact that the target markets had indicated what they would pay for such product and the cost of production was over whelming the income received from sales. After the

A Case Study on O.M Scott & Sons Co. Table of Contents Objective……………………………………………………….…………1 Company Background……………………………………………………1 Ratio Analysis…………………………………………………………….1 Pro Forma Analysis……………………………………………………….3 Sensitivity Analysis……………………………………………………….3 Recommendations for Management………………………………………4 Summary of Case Study…………………………………………………..4 Appendix………………………………………………………………….5 Objective This paper will seek to analyze the financial statements of the O.M Scott & Sons

their sales, reduce their inventory. They also have to collect their account receivable more efficiency. Recommendation  According to the pro forma statements (appendix 2), Jones should take the strategy that is “rapid sales growth -- forgo trade discounts – large need for financing -- debt finance -- long- term debt”.    According to the pro forma statement (appendix 2) and the strategy Jones take, it needs about $318,000 of loans.  Appendix 3: Data analysis | | | | | With 2% discount

Hampton Machine Tool Company 1. Why can't a profitable firm like Hampton repay its loan on time and why does it need more bank financing? What major developments between November 1978 and August 1979 contributed to this situation? A/ Hampton Machine Tool Company was unable to repay its loan on time due to several factors. One of such factors is the fact that the stock repurchase, for which the loan was initially requested, was a major cash disbursement of $3 million. In the period between November

1) GENUINE MOTOR PRODUCTS Revised Pro forma Income Statement For 2007 Sales (1,000,000 units @ $30 per unit) Fixed costs Total variable costs (1,000,000 units @ $18.80 per unit) Operating Income (EBIT) Interest (10.75% x $12,000,000) Earnings before taxes Taxes (35%) Earnings after taxes Shares Earnings per share * Fixed costs include $2,800,000 in depreciation $ 30,000,000 5,800,000 18,800,000 5,400,000 1,290,000 4,110,000 1,438,500 2,671,500 2,320,000 1.15 $ $ $ 2) Although there is more

will increase net income and provide more value for the shareholders. The pro forma statements show that Polar Sports will be more profitable. Polar Sports will make $406,000 more in net income under level production. The difference in net income overall is due to the decrease in COGS of $1,080,000 offset by increases in operating expenses, interest paid, and taxes and a decrease in interest earned. If Mr. Weir

Student Project Activity – Week 1   A. Week 1: Section 1.0 Executive Summary     B. TCOs Addressed:   TCO 10: Given a description of a new business, new product, service or project develop, present and defend the budget.                                C. Project Activity Overview – Scenario / Summary:   You have been asked to create a budget proposal for one of these businesses: Papa Geo’s Restaurant, The Cutting Edge Landscaping, or Wireless World Electronics Retail

four years i.e. 1968 through 1971 with the help of the Statement of Sources and Uses (Exhibit 1). In addition, the financing needs for the projected growth of the company will be reported and analyzed briefly. For this purpose Pro-forma Income Statements (Exhibit 2) and Pro-forma Balance Sheets (Exhibit 3) have been prepared for the next four years (1972 through 1975). From 1968 to 1971, Carrefour has used trade notes extensively as a source of cash. Other significant sources of funds are Other

to build a financial plan for the business. Write a four to five (4-5) page paper in which you: 1. Prepare a pro forma balance sheet for the first twelve (12) months of your business. Include the assumptions on which it is based. Justify your balance sheet. 2. Prepare a pro forma income statement for the first twelve (12) months

B1: BUDGETS The Marketplace simulation helped me realize how complicated and difficult decision making can be when trying to build a company. Among the most important simulation results were utilizing the budgets and pro forma statements. Budgets are beneficial as a financial plan by listing all planned expenses and income. The purpose is to be able to forecast revenues and expenses and create a business model that operates effectively to make sure overhead can be paid. -------------------------------------------------