Financial Forecasting and Short-term Financing Forecasting and Pro Forma Analysis Timing of financial needs Amount of financial needs Flow of funds Check the covenants Pro forma Income Statement Pro forma Balance Sheet Plug Figure Financing Options Depreciation
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Pro forma Balance Sheet
Change in Net Plant & Equipment
Working Capital Accounts
Change in Retained Earnings
= ($1,000/$2,000)($500) - ($100/$2,000)($500) - 0.0252($2,500)(1 - 0.3)
= $180.9 million.
Cash Cycle = Operating cycle – A/P days
Operating Cycle = 75 + 80 = 155 days
Cash Cycle = 155 days – 83 days = 72 days