User Account

All Pages

Develop pro forma financial statements for the company

Assignment Help Accounting Basics
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

Questions Cloud

Demographics of surrounding community : Create a PowerPoint covering the areas listed above for presentation to the president and board of trustees.
What is the capital structure weight of equity : The semiannual bonds have a coupon rate of 8% and a yield to maturity of 6%. The tax rate is 40%. There is no preferred stock.
Find the probability mass function of number of customers : People enter a department store according to a Poisson process with rate a per hour. It is known that 30% of those entering the store will make a purchase.
Weighted average cost of capital : If the corporate tax rate is 37%, what is the Weighted Average Cost of Capital (WACC) for this firm?
Develop pro forma financial statements for the company : Use historical financial statements for the years 2000,2001 and 2002 to develop pro forma financial statements for the company
Expect on a risk-free norwegian security : What real rate of return should you expect on a risk-free Norwegian security?
What would be the diluted earnings per share : At December 31, 2010, Sager Co. had 1,200,000 shares of common stock outstanding. What would be the diluted earnings per share for 2011
Discuss the role of prophetic experience : Discuss the role of prophetic experience and mystical union in the intellectual mysticism of Maimonides and the prophetic kabbalah of Abraham Abulafia
Total stock market fund : In order to come closest to achieving your desired level of systematic risk, what percentage in your 401(k) plan would you invest.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Discuss the liabilities of a company

The purpose of this assignment is to help you understand the balance sheet presentation for the liabilities of a company

  What are total fixes expenses

if the contribution margin ratio is 70% ,targeted operating income is $86000 and targeted sales in dollars is $480,000. what are total fixes expenses?

  What is the present value of his future pot of gold

Phil Goode will receive $175,000 in 50 years. His friends are very jealous of him. If the funds are discounted back at a rate of 14 percent, what is the present value of his future "pot of gold"?

  What was ending inventory using the lifo cost flow

What was ending inventory using the LIFO cost flow assumption under a periodic inventory system

  Prepare a corrected classified balance sheet in good form

Problem - Preparation of a Corrected Balance Sheet. Buildings are stated at cost, except for one building that was recorded at appraised value

  Prepare the journal entry to record company taxes

In 2010 the company reported $10 million in pretax income. Requirements: Prepare the journal entry to record Company A's income taxes

  What is the amount of dividends declared and distributed in

freebird company a merchandiser recently completed its 2013 calendar year. for the year 1 all sales are credit sales 2

  Develop a linear programming model

Develop a linear programming model that will enable HTS to allocate technician time between regular customers and new customers.

  Elle inc has two types of handbags standard and custom the

elle inc. has two types of handbags standard and custom. the controller has decided to use a plant wide overhead rate

  Aspects of culture that impact leadership behaviors

Determine the key aspects of culture that impact leadership behaviors, attributes, and other cross-cultural organizational practices that are generally accepted and effective. Provide a rationale for your response.

  Discuss without the buildings and improvements

Without the buildings and improvements, the tract of land is valued at $1,890,000. The company also incurs the following additional costs

  Walt disney 2125 bonds due in 2023 were reported in the

walt disney 2.125 bonds due in 2023 were reported in the wallstreet journal as selling for 103.536. were the bonds

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd