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Amalgamated Enterprises Is Planning to Purchase Some New Equipment

question 68

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Amalgamated Enterprises is planning to purchase some new equipment.With this new equipment,the company expects sales to increase from $8,000,000 to $10,000,000.A portion of the financing for the purchase of the equipment will come from a $1,000,000 new common stock issue.The company knows that its current assets,fixed assets,accounts payable,and accrued expenses increase directly with sales.The company's net profit margin on sales is 8 percent,and the company plans to pay 40 percent of its after-tax earnings in dividends.A copy of the company's current balance sheet is given below. Amalgamated Enterprises Balance Sheet Amalgamated Enterprises is planning to purchase some new equipment.With this new equipment,the company expects sales to increase from $8,000,000 to $10,000,000.A portion of the financing for the purchase of the equipment will come from a $1,000,000 new common stock issue.The company knows that its current assets,fixed assets,accounts payable,and accrued expenses increase directly with sales.The company's net profit margin on sales is 8 percent,and the company plans to pay 40 percent of its after-tax earnings in dividends.A copy of the company's current balance sheet is given below. Amalgamated Enterprises Balance Sheet   Prepare a pro forma balance sheet for Amalgamated for next year. Prepare a pro forma balance sheet for Amalgamated for next year.


Definitions:

Prezygotic Barriers

Mechanisms that prevent mating or fertilization between species, ensuring reproductive isolation and species divergence.

Postzygotic Barriers

Reproductive isolating mechanisms that occur after fertilization, preventing the development of viable or fertile offspring between different species.

Temporal Isolation

A mechanism of reproductive isolation in which different species breed at different times, preventing them from interbreeding.

Habitat Isolation

A prezygotic barrier where two species live in different habitats within the same area but do not meet, preventing them from mating.

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