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Ma amp; Pa Kettle's Chili Company have started up a business selling their new chili recipe and they want you to help them with next year's sales
Ma & Pa Kettle’s Chili Company have started up a business selling their new chili recipe and they want you to help them with next year’s sales forecast. Using the worksheet below, complete Ma & Pa’s financial forecast and answer the questions which follow.To begin with, Ma & Pa are sure sales will grow 50% next year. Assume that is true. Then assume that COGS, Current Assets, and Current Liabilities all vary directly with Sales. Assume that fixed expenses will remain unchanged and that $1,000 worth of new Fixed Assets will be obtained next year. Lastly, the current dividend policy will be continued next year.Ma & Pa Kettle Chili Company, Inc.Financial Status and Forecast for 20102009 Est for 2010 Sales $10,000________ 4,000________ 6,000________ 3,000________ 3,000________ 1,000 ________ $2,000________ $0________ $25,000________ 15,000________ $40,000________ $17,000________ 3,000________ 7,000________ 13,000 ________ $40,000 ________ .$________.
