1. Morgan LLC has base sales of 100 and salaries expense is 64% of sales. Assuming sales, salaries expense for the first proforma year is :
a. 75.80
b. 76.20
c. 77.40
d. none of the above
2. Assets are 100 and expected to grow by 10%. Liabilities and owners equity are 100 and expected to grow by 12%. The plug for the first proforma is a :
a. Liability plug
b. cash plug
c. Neither a or b
3. Manson LLC has base sales of 100 and maintenance expense is 33% of the sales. Assume a 15% increase in sales, maintenance expense for the first proforma year is:
a. 35.95
b. 36.95
c. 37.95
d. 38.95
4. Todd LLC has base sales of 100 and rent expense is 14% of sale. Assuming a 20% increase in sales rent expense for the first proforma year is:
A. 15
B. 16
C. 16.4
D. 16.80
5. Assets are 100 and expected to grow by 17%. Liabilities and owners’ equity are 100 and expected to grow by 19%. The plug for the first proforma year is a:
a. Liability plug
b. Cash plug
c. Neither A or B