Discussion A
Before developing a pro forma income statement, one must first prepare a sales projection. Explain why this first step is so critical based on your reading.
Then, review the quarterly report for Deere & Company you downloaded for the Analyzing the Statement of Cash Flows discussion.
Describe how it addresses the sales results, and then outline the issues this company faces regarding sales projections.
Discussion B
As you explored in your textbook, financial leverage refers to the amount of debt used in the capital structure of a business. The degree of financial leverage measures the effect of a change in the earnings per share (EPS) of the company that occurs because of a percent change in the earnings before interest and taxes (EBIT).
List some of the benefits and limitations of financial leverage when it comes to profitability.
Then, explain the factors a company should consider when deciding which type of leverage plan (i.e., leveraged or conservative) it should follow.
The response should include a reference list. One-inch margins, Using Times New Roman 12 pnt font, double-space and APA style of writing and citations.