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:
Q1) 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%.
Q2) State what additional assumptions and information that you would need to prepare a cash budget.
Q3) Be sure to list the underlying assumptions of your analysis and computations.
Q4) Recalculate the same ratios from Week Two using the Microsoft® Excel® Worksheet.
Q5) Describe your results and make recommendations to management.