Problem: Using the most recent finacial statements for Citigroup and Bank of America's financial complete the following.
Companies Pro Forma Financial Paper
Using Citigroup and Bank of America's most recent finacials. Based on the financial statement in the annual report for both of the companies you have chosen:
a) Develop a set of pro forma financials (income statement and balance sheet only) for the next fiscal year-end using the percent-of-sales method. Assume that the company's sales have increased by 15%.
b) State what additional assumptions and information that you would need to prepare a cash budget.
c) Be sure to list the underlying assumptions of your analysis and computations.
d) Recalculate the same ratios from Week Two using the Microsoft® Excel® Worksheet.
e) Describe your results and make recommendations to management.