Any financing needed will be raised through the sale of

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Percent of sales: Tomey Supply Company"s financial statements for the most recent fiscal year are shown below. The company projects that sales will increase by 20 percent next year. Assume that all costs and assets increase directly with sales. The company has a constant 33 percent dividend payout ratio and has no plans to issue new equity. Any financing needed will be raised through the sale of long-term debt. Prepare pro forma financial statements for the coming year based on this information, and calculate the EFN for Tomey.

Tomey Supply Company Income Statement and Balance Sheet

Income Statement

Balance Sheet

Net sales

$1,768,121

Assets:


Costs

1,116,487

Current Assets

$280,754

EBT

651,634

Net Fixed assets

713,655

Taxes(35%)

228,072

Total assets

$994,409

Net income

$423,562





Liabilities and Equity:



Current Liabilities

$167,326



Long term debt

319,456



Common Stock

200,000



Retained earning

307,627



Total liabilities and equity

$994,409

Reference no: EM13575993

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