Pro Forma Financial Statements
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fin401_homework_problem_12-9_1.xlsA
| FIN401 - Ch.12 Problems | Solution | Projected Growth is 10% | ||||||
| Problem 12-9. | ||||||||
| (a.) First | (b.) Second | Third | Fourth | Fifth | Final | |||
| Balance Sheet | Projection | Projection | Projection | Projection | Projection | Projection | ||
| 12/31/2013 | % of S | 12/31/14 | 12/31/14 | 12/31/14 | 12/31/14 | 12/31/14 | 12/31/14 | |
| Cash | 180,000.00 | 0.0500 | 198,000.00 | 198,000.00 | 198,000.00 | 198,000.00 | 198,000 | 198,000 |
| Receivables | 360,000.00 | 0.1000 | 396,000.00 | 396,000.00 | 396,000.00 | 396,000.00 | 396,000 | 396,000 |
| Inventory | 720,000.00 | 0.2000 | 792,000.00 | 792,000.00 | 792,000.00 | 792,000.00 | 792,000 | 792,000 |
| Total Current Assets | 1,260,000.00 | 1,386,000.00 | 1,386,000.00 | 1,386,000.00 | 1,386,000.00 | 1,386,000 | 1,386,000 | |
| Net Fixed Assets | 1,440,000.00 | 0.4000 | 1,584,000.00 | 1,584,000.00 | 1,584,000.00 | 1,584,000.00 | 1,584,000 | 1,584,000 |
| Total Assets | 2,700,000.00 | 2,970,000.00 | 2,970,000.00 | 2,970,000.00 | 2,970,000.00 | 2,970,000 | 2,970,000 | |
| Accounts Payable | 360,000.00 | 0.1000 | 396,000.00 | 396,000.00 | 396,000.00 | 396,000.00 | 396,000 | 396,000 |
| Line of Credit | 128,783.20 | 138,828.29 | 139,611.81 | 139,672.92 | 139,677.69 | |||
| Notes Payable | 156,000.00 | 156,000.00 | 156,000.00 | 156,000.00 | 156,000.00 | 156,000 | 156,000 | |
| Accruals | 180,000.00 | 0.0500 | 198,000.00 | 198,000.00 | 198,000.00 | 198,000.00 | 198,000 | 198,000 |
| Total Current Liabilities | 696,000.00 | 750,000.00 | 878,783.20 | 888,828.29 | 889,611.81 | 889,673 | 889,678 | |
| Common Stock | 1,800,000.00 | NA | 1,800,000.00 | 1,800,000.00 | 1,800,000.00 | 1,800,000.00 | 1,800,000 | 1,800,000 |
| Retained Earnings | 204,000.00 | NA | 291,216.80 | 281,171.71 | 280,388.19 | 280,327.08 | 280,322 | 280,322 |
| Total Liabilities & Equity | 2,700,000.00 | 2,841,216.80 | 2,959,954.91 | 2,969,216.48 | 2,969,938.89 | 2,969,995 | 2,970,000 | |
| AFN (external) | 128,783.20 | 10,045.09 | 783.52 | 61.11 | 4.77 | 0.37 | ||
| Cumulative AFN | 128,783.20 | 138,828.29 | 139,611.81 | 139,672.92 | 139,677.69 | 139,678.06 | ||
| First | Second | Third | Fourth | Final | Final | |||
| Income Statement | Projection | Projection | Projection | Projection | Projection | Projection | ||
| 12/31/2013 | 12/31/14 | 12/31/14 | 12/31/14 | 12/31/14 | 12/31/14 | 12/31/14 | ||
| Sales | 3,600,000.00 | 1.00 | 3,960,000.00 | 3,960,000.00 | 3,960,000.00 | 3,960,000.00 | 3,960,000.00 | 3,960,000.00 |
| Operating Costs | 3,279,720.00 | 0.91 | 3,607,692.00 | 3,607,692.00 | 3,607,692.00 | 3,607,692.00 | 3,607,692.00 | 3,607,692.00 |
| EBIT | 320,280.00 | 352,308.00 | 352,308.00 | 352,308.00 | 352,308.00 | 352,308.00 | 352,308.00 | |
| Interest | 18,280.00 | new rate | 20,280.00 | 37,021.82 | 38,327.68 | 38,429.53 | 38,437.48 | 38,438.10 |
| EBT | 302,000.00 | 332,028.00 | 315,286.18 | 313,980.32 | 313,878.47 | 313,870.52 | 313,869.90 | |
| Taxes (.40) | 120,800.00 | 132,811.20 | 126,114.47 | 125,592.13 | 125,551.39 | 125,548.21 | 125,547.96 | |
| Net Income | 181,200.00 | 199,216.80 | 189,171.71 | 188,388.19 | 188,327.08 | 188,322.31 | 188,321.94 | |
| Dividends | 108,000.00 | 112,000.00 | 112,000.00 | 112,000.00 | 112,000.00 | 112,000.00 | 112,000.00 | |
| Additions to Ret. Earn. | 73,200.00 | 87,216.80 | 77,171.71 | 76,388.19 | 76,327.08 | 76,322.31 | 76,321.94 | |
| DPS | 1.08 | 1.12 | 1.12 | 1.12 | 1.12 | 1.12 | 1.12 | |
| No. Common Shares | 100,000.00 | 100,000.00 | 100,000.00 | 100,000.00 | 100,000.00 | 100,000.00 | 100,000.00 | |
| Additional Notes Payable | na | na | 128,783.20 | 10,045.09 | 783.52 | 61.11 | 4.77 | |
| Add. Interest Expense | na | na | 16,741.82 | 1,305.86 | 101.86 | 7.94 | 0.62 | |
| Additional Common Stock | na | na | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |
| Additional Shares | na | na | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |
| Additional Dividends | na | na | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
