The Balance Sheet of the James Group Is Presented Below

question 79

Essay

The balance sheet of the James Group is presented below:
James Group Balance Sheet
March 31, 2017
(Millions of Dollars)
For the year ending March 31, 2017, James had sales of $35 million.The common stockholders received all net earnings of the firm in the form of cash dividends, leaving no funds from earnings available to the firm for expansion (assume that depreciation expense is just equal to the cost of replacing worn-out assets).
Construct a pro forma balance sheet for March 31, 2018, for an expected level of sales of $45 million.Assume current assets and accounts payable vary as a percent of sales, and fixed assets remain at the present level.Use notes payable as a source of discretionary financing.

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Definitions:

Overt-destructive

Refers to behaviour that is openly aggressive and destructive.

Overt-nondestructive

Behaviors or actions that are openly displayed or expressed but are not harmful or intended to cause damage.

Covert-destructive

Behavior that is secretly harmful or damaging, especially pertaining to actions that are not openly acknowledged or displayed.

Sexual Abuse

Any non-consensual sexual activity imposed on one person by another, involving manipulation, force, or exploitation.