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Develop pro forma financial statements for the company

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Reference no: EM131769142

Use historical financial statements for the years 2000,2001 and 2002 to develop pro forma financial statements for the company (both an income statement and a balance sheet). As outlined in the case, your firm projects a 20% increase in sales for 2003 and 2004.

Exhibit 1 Financial Statements.

For years ending 12/31 2000 2001 2002
       
INCOME STATEMENT      
       
Net sales $16,230 $20,355 $23,505
Cost of sales 9,430 11,898 13,612
Gross profit 6,800 8,457 9,893
Selling, general, and administrative expenses 5,195 6,352 7,471
Depreciation 160 180 213
Net interest expense 119 106 94
Pre-tax income 1,326 1,819 2,115
Income taxes 546 822 925
Net income $780 $997 $1,190
       
Dividends $155 $200 $240
       
BALANCE SHEET      
       
Assets      
Cash $508 $609 $706
Accounts receivable 2,545 3,095 3,652
Inventories 1,630 1,838 2,190
Total current assets 4,683 5,542 6,548
       
Gross plant & equipment 3,232 3,795 4,163
Accumulated depreciation 1,335 1,515 1,728
Net plant & equipment 1,897 2,280 2,435
       
Total assets $6,580 $12,122 $8,983
       
LIABILITIES      
       
       
Current maturities of
long-term debt		 $125 $125 $125
Accounts payable 1,042 1,325 1,440
Accrued expenses 1,145 1,432 1,653
Total current liabilities 2,312 2,882 3,218
       
Long-term debt 1,000 875 750
       
Common stock 1,135 1,135 1,135
Retained earnings 2,133 2,930 3,880
Total shareholders' equity 3,268 4,065 5,015
       
Total liabilities $6,580 $7,822 $8,983

Reference no: EM131769142

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