1. Morgan LLC has base sales of 100 and salaries expense is 64% of sales. Assuming sales, salaries expense for the first proforma year is :

a. 75.80

b. 76.20

c. 77.40

d. none of the above

2. Assets are 100 and expected to grow by 10%. Liabilities and owners equity are 100 and expected to grow by 12%. The plug for the first proforma is a :

a. Liability plug

b. cash plug

c. Neither a or b

3. Manson LLC has base sales of 100 and maintenance expense is 33% of the sales. Assume a 15% increase in sales, maintenance expense for the first proforma year is:

a. 35.95

b. 36.95

c. 37.95

d. 38.95

4. Todd LLC has base sales of 100 and rent expense is 14% of sale. Assuming a 20% increase in sales rent expense for the first proforma year is:

A. 15

B. 16

C. 16.4

D. 16.80

5. Assets are 100 and expected to grow by 17%. Liabilities and owners’ equity are 100 and expected to grow by 19%. The plug for the first proforma year is a:

a. Liability plug

b. Cash plug

c. Neither A or B