PROF SocratesCreate an Excel spreadsheet to organize your answers to the following problem, and submit your Excel file as an attachment by clicking on the appropriate button on this page.
[Hint: I recommend you copy this problem to a Word or Excel document and print it out so that you can work with it in a reasonable manner.]
A company published the following information in its financial statements for its 2015 annual report:
Sales |
| $76,000 |
- Cost of goods sold |
| 49,000 |
Gross profit |
| 27,000 |
- Cash Operating expenses | $9,000 |
|
- Depreciation | 2,000 |
|
Total Operating Expenses |
| 11,000 |
EBIT |
| 16,000 |
- Interest expense |
| 840 |
EBT |
| 15,160 |
- Tax expense |
| 5,306 |
Net Income |
| $9,854 |
|
|
|
- Dividends |
| 3,942 |
Addition to retained earnings |
| $5,912 |
|
|
|
Cash | $9,000 |
Marketable securities | 2,000 |
Accounts receivable | 11,000 |
Inventories | 7,000 |
Fixed Assets, net | 24,000 |
Total Assets | $53,000 |
|
|
Accounts payable | $8,000 |
Accrued payables | 3,000 |
Bonds payable | 12,000 |
Common stock | 16,000 |
Retained earnings | 14,000 |
Total Liabilities and Equity | $53,000 |
Sales in 2016 are estimated to be $90,000. Cost of goods sold and $5,000 of the cash operating expenses are considered variable costs.
- Depreciation and the remainder of cash operating expenses are considered to be fixed costs.
- Cash, accounts receivable, inventories, accounts payable, and accrued payables are considered to be spontaneous items.
- Marketable securities, net fixed assets, bonds payable, and common stock are discretionary.
- $5,000 of bonds payable at the end of 2015 are considered "current liabilities," and will be repaid in early 2016.
- The company purchased fixed assets of $3,600 in 2016, but depreciation for 2016 will remain the same dollar amount as it was for 2015.
- The firm will maintain its 2015 dividend payout ratio in 2016.
- The income tax rate for 2016 is expected to be the same as it was in 2015.
Required:
Prepare the pro-forma 2016 income statement, balance sheet, and statement of cash flows
10 years ago
Purchase the answer to view it
9091583.xlsx
