Principles of Managerial Finance (14th Edition) (Pearson Series in Finance)
Principles of Managerial Finance (14th Edition) (Pearson Series in Finance)
14th Edition
ISBN: 9780133507690
Author: Lawrence J. Gitman, Chad J. Zutter
Publisher: PEARSON
Question
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Chapter 4, Problem 4.20P

a)

Summary Introduction

To calculate: Pro forma income statement using fixed cost method.

Introduction:

A reports that shows the revenues and expenses from business operations and the result of those operations as net income or net loss for a particular timeframe is referred to as income statement.

b)

Summary Introduction

To calculate: Pro forma balance sheet statement.

Introduction:

Balance Sheet summarizes the assets, the liabilities, and the shareholder’s equity of a company at a given date. It is also known as the statement of financial status of the business.

c)

Summary Introduction

To discuss: How much Additional financing is required by Company P for the year 2016.

Introduction:

Financing refers to the activities carried out by a company to mobilize funds to carry out the business activities. The examples for financing activities are purchase of bonds and issuing of common shares.

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Chapter 4 Solutions

Principles of Managerial Finance (14th Edition) (Pearson Series in Finance)

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