Fin370-Week2-Lab Use The Common-Size Financial Statements

IMPORTANT: Enter your numbers into boxes that have a black border ONLY. When numbers are entered in these fields, the solutions will update automatically. Good luck! And as always, feel free to contact the accounting experts at ACCNerd.com for addiational support. Problem 1 How to use the FIN 370 Week 2 Lab Guide(Preparing common-size financial statements) The balance sheet and income statement for Carver Enterprises, Inc. are found here:Cash and securitiesAccounts ReceivableInventories Current AssetsNet Property, Plant, Equip Total AssetsAccounts PayableShort Term Debut Current LiabilitiesLong Term Liabilities Total Liabilities Total Owners Equity Total Liabilites and EquityCommon Size Balance Sheet 2013Problem 2(Using common-size financial statements) The S&H Construction Company expects to have total sales next year totaling $14,500,000. ln addition, the firm pays taxes at 35 percent and will owe $286,000 in interest expense. Based on last year's operations the firm's management predicts that its cost of goods sold will be 60 percent of sales and operating expenses will total 26 percent. What is your estimate of the firm's net income (after taxes) for the coming year?Total SalesInterest ExpenseCost of Goods Sold %Operating Expense %Tax Rate %Pro Forma Income StatementProblem 3SalesCost of Goods SoldGross ProfitOperating ExpensesNet Operating IncomeEarnings before TaxesTaxesNet IncomeA. Short