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You are trying to evaluate how much money your company, XYZ Corporation, will need to borrow from the bank, if any. You are in the middle of preparing the pro forma financial statements for 2005. On the next pages is the evaluated income statement and partially completed balance sheet for your company for 2005.

a. Using the information provided below complete the balance sheet for 2005.
• Inventory turnover (using end-of-year inventory) is 4
• Your silent partners demand that 50% of total income is paid out in dividends
• You will borrow if you have a cash shortage and can reduce long-term debt if there is an excess of cash

b. When you have evaluated part a, evaluate a statement of cash flows.

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Financial Accounting, Accounting

Category:- Financial Accounting
Reference No.:- M9132613

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