Create proforma statements for your chosen company for next year.

Question # 00712102 Posted By: spqr Updated on: 10/14/2018 08:31 PM Due on: 10/15/2018
Subject Business Topic General Business Tutorials:
Question
Dot Image

this mid-term assignment has three related parts:

Create proforma statements for your chosen company for next year.
Estimate the sustainable growth rate for your company.
Perform a SWOT analysis on your company, using lessons you have learned in weeks one through four concerning microeconomics, macroeconomic, financial analysis and financial forecasting.
Be sure your assignment includes the following details:

Part I:

Estimate the sales growth rate for the company for the next annual accounting period. Explain each step of your estimation process, similar to the process described in Higgins (2015).
Create proforma income statements and proforma balance sheets for your company for the next annual accounting period using the percent of sales method. Assume that all income accounts increase as a percent of sales, all asset accounts increase as a percent of sales, spontaneous liabilities increase as a percent of sales, and all financing accounts remain constant. The statements you create

01:41

will be the initial round in order to determine external funding needed. Clearly identify what your statements indicate is the need for external funds for the next annual accounting period.
Part II:

Estimate the sustainable growth rate for your firm. Assume that all income accounts increase as a percent of sales, all asset accounts increase as a percent of sales, spontaneous liabilities increase as a percent of sales, and all financing accounts remain constant. Also assume that the company will pay the exact same dollar amount in dividends in the next annual accounting period that it paid during the most recent period. Be sure to describe all steps in the process and clearly indicate the growth rate (as a percentage) that you find.

01:42

Compare the sustainable growth rate you determined to the average annual growth rate in sales the company has had over the past 2 years. Is the average annual growth rate greater than or less than the sustainable growth rate? Assess this relationship.
Part III:

Conduct a SWOT analysis of your company. Use one of the many templates (tables) for SWOT that you can find online. Your SWOT analysis should include at least three entries for each element in the table. The entries should be some combination of microeconomic (related to demand for the product, cost functions, competition, etc.), macroeconomic (related to projected growth in the overall economy, inflation, unemployment, etc.), financial past (based on your analysis in week three), and projected financial future (based on your analysis in Week 4).
Write a one-paragraph description of each element in your SWOT table. Specifically indicate why you believe the chosen element is a Strength, Weakness, Opportunity or Threat.

Dot Image
Tutorials for this Question
  1. Tutorial # 00712307 Posted By: spqr Posted on: 10/14/2018 08:32 PM
    Puchased By: 4
    Tutorial Preview
    The solution of Create proforma statements for your chosen company for next year....
    Attachments
    Walmart_paper.doc (220.5 KB)
    Recent Feedback
    Rated By Feedback Comments Rated On
    pa...44 Rating Gives best advice and strategies 02/16/2019

Great! We have found the solution of this question!

Whatsapp Lisa