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Prepare a pro forma income statement and balance sheet for 1991 to determine how much Butler Lumber will need to borrow if it expands as planned.
Based on the attached pro forma income statement and balance sheet, it is determined that Butler Lumber will need to increase their current debt to approximately $350,000 to continue their expansion as planned. This increase would add an additional $116,000 to their already substantial amount of debt.
The calculations on the pro forma income statement and balance sheet appear to be higher than those from previous years. This is due to the expected increase in net sales...
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