Feedback:Capital expenditures cannot be negative. PPE is not a percent of assets. It is caused and supports revenue, therefore, it should be linked to a percentage of sales. Why are inventories, Other...

1 answer below »

Feedback:Capital expenditures cannot be negative. PPE is not a percent of assets. It is caused and supports revenue, therefore, it should be linked to a percentage of sales. Why are inventories, Other current assets, and Prepaid expenses so different in the forecast compared to history? Why did Accounts payable suddenly decline? And Income tax payable suddenly appear? Fix these.






I also need the pro forma corrected to use the AMC income statement and balance sheet. (There is a tab that has the statements and the current proforma. Some lines are missing and do not match the statement.)






I need the DCF tab corrected due to changes that need to made to proforma. (wk5 videos, formulas are correct with what each one needs to use but depending on pro forma and how it is adjusted it may need to be adjusted to be correct)






Change any assumptions on the assumption tab as needed to fix numbers.






I need the APV tab explained in a word document






** DO NOT change formating






I do have some other information if needed ask before it is too late




Wk 3 https://youtu.be/ta360UvP1io https://youtu.be/K9JJbMhkQfo https://youtu.be/5PYHfMkDnmg https://youtu.be/LGDOEckEXiQ wk4 https://youtu.be/UJbDlpwRyaE https://youtu.be/TXXVgftuVn0 https://youtu.be/LWhO7vJGSJ4 https://youtu.be/g4NPALcaQ9I https://youtu.be/JKrbDduRu4I https://youtu.be/Ro6KslaJnB4 https://youtu.be/WHmsSTo9Jwo https://youtu.be/5qN9Kx88HtI https://youtu.be/X7M_54vSOJ4 https://youtu.be/sdSgTiRi7Hk https://youtu.be/2zVTLW4Lutk https://youtu.be/FsxEHzUSggY wk5 https://youtu.be/w7Kzj_XYTJA https://youtu.be/rseHWnN5afc https://youtu.be/twnnFGEtHAk https://youtu.be/bhyMQ09YnLo https://youtu.be/9yVwhRFcyUo wk6 https://youtu.be/8Z_cOxDF5kI https://youtu.be/CS6Gg9srj5c https://youtu.be/2bqDdohMkLc wk7
Answered Same DayDec 09, 2021

Answer To: Feedback:Capital expenditures cannot be negative. PPE is not a percent of assets. It is caused and...

Pallavi answered on Dec 12 2021
154 Votes
Justifications
PPE’s have been changed as % of Sales
Inventories should be calculated as % of COGS
not sales. Accordingly inventory has been changed and is now calculated as % of COGS. Now, inventory does not different significantly from the historical figure. Only the inventory for the year the later years differs from history because over the years the Sales has grown owing to which the COGS has also increased, and since inventory was calculated as % of COGS, naturally the Inventory value would also go high.
Prepaid Expenses have been calculated as % of sales and as the sales are increasing, the prepaid expenses are also increasing.
Accounts payable have not declined. The figures below indicate a proper pattern and there is no sudden decline....
SOLUTION.PDF

Answer To This Question Is Available To Download

Related Questions & Answers

More Questions »

Submit New Assignment

Copy and Paste Your Assignment Here