1.Forecast the financial statements for the Polymold Division with and without the CAD/CAM purchase.
a.What differences do you find in the income statements as a result of the purchase?What causes those changes?
b.What differences do you find in the balance sheets as a result of the purchase?What causes those differences?
2.If you were deciding whether or not to purchase CAD/CAM, what financial statement information would you consider?What other information would you take into account?
3.Should the Polymold Division be allowed to purchase the CAD/CAM?
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