Chapter 4:
3. Fire Corp financial statements:
Pro forma income statement
Pro forma balance sheet
Sales...
Chapter 4:
3. Fire Corp financial statements:
Pro forma income statement
Pro forma balance sheet
Sales
$ 32,000
Assets
$25,300
Debt
$ 5,800
Costs
$ 24,400
________
Equity
$ 19,500
Net
income
$ 7,600
Total
$25,300
Total
$ 25,300
It expects 15% sales increase. It also predicts every item on
the balance sheet will increase
by 15% as well. Create the pro forma statements. What’s the plug
variable here?
This experiential exercise involves creating a pro forma Balance
Sheet and a pro forma Income Statement...
This experiential exercise involves creating a pro forma Balance
Sheet and a pro forma Income Statement for XYZ Company. Assume the
current year is 2015. To assist you in this endeavor, an Excel
worksheet containing XYZ’s 2014 Income Statement and Balance Sheet
has been provided. Develop the two pro forma financial statements
for 2015 based upon the following assumptions:
The company plans to increase sales
by an additional 2 percent in 2015 due to minor price increases.
In addition, the...
610A
Create a Pro-Forma balance sheet, income statement, and
statement of cash flow projecting the first...
610A
Create a Pro-Forma balance sheet, income statement, and
statement of cash flow projecting the first year of our product in
the business. These preliminary projections are based on research
and data collected so far and will likely change, once our products
are commercialized. Each statement should address the financial
components of features, expenses, and sales of your product or
service. It is typical for net income to be negative at this point.
Do not assume that you have sales...
Assume ABC Company has asked you to not only prepare their 2017
year-end Balance Sheet but...
Assume ABC Company has asked you to not only prepare their 2017
year-end Balance Sheet but to also provide pro-forma financial
statements for 2018. In addition, they have asked you to evaluate
their company based on the pro-forma statements with regard to
ratios. They also want you to evaluate 3 projects they are
considering. Their information is as follows:
End of the year information:
Account
12/31/17
Ending Balance
Cash
50,000
Accounts Receivable
175,000
Inventory
126,000
Equipment
480,000
Accumulated Depreciation
90,000...
Problem 12-09
Financing Deficit
Garlington Technologies Inc.'s 2016 financial statements are
shown below:
Balance Sheet as...
Problem 12-09
Financing Deficit
Garlington Technologies Inc.'s 2016 financial statements are
shown below:
Balance Sheet as of December 31, 2016
Cash
$ 180,000
Accounts payable
$ 360,000
Receivables
360,000
Notes payable
156,000
Inventories
720,000
Line of credit
0
Total current assets
$1,260,000
Accruals
180,000
Fixed assets
1,440,000
Total current liabilities
$ 696,000
Common stock
1,800,000
Retained earnings
204,000
Total assets
$2,700,000
Total liabilities and equity
$2,700,000
Income Statement for December 31, 2016
Sales
$3,600,000
Operating costs
3,279,720
EBIT
$ 320,280
Interest
18,280
Pre-tax earnings...
Watson’s revised pro forma
cost of goods sold is closest to
A.
$16,565,000
B.
$16,942,000
C....
Watson’s revised pro forma
cost of goods sold is closest to
A.
$16,565,000
B.
$16,942,000
C.
$17,377,000
D.
$17,760,000
The following information was
adapted from a question on Part 4 of the December 1990 CMA
examination that concerned preparation of a pro forma statement of
cost of goods sold. The following is Watson Corporation’s pro forma
statement of cost of goods sold for the year ended August 31, Year
2.
Watson Corporation
Pro Forma Statement of Cost of Goods Sold...
Financing Deficit
Garlington Technologies Inc.'s 2016 financial statements are
shown below:
Balance Sheet as of December...
Financing Deficit
Garlington Technologies Inc.'s 2016 financial statements are
shown below:
Balance Sheet as of December 31, 2016
Cash
$ 180,000
Accounts payable
$ 360,000
Receivables
360,000
Notes payable
156,000
Inventories
720,000
Line of credit
0
Total current assets
$1,260,000
Accruals
180,000
Fixed assets
1,440,000
Total current liabilities
$ 696,000
Common stock
1,800,000
Retained earnings
204,000
Total assets
$2,700,000
Total liabilities and equity
$2,700,000
Income Statement for December 31, 2016
Sales
$3,600,000
Operating costs
3,279,720
EBIT
$ 320,280
Interest
18,280
Pre-tax earnings
$ 302,000
Taxes...
Financing Deficit Garlington Technologies Inc.'s 2016 financial
statements are shown below: Balance Sheet as of December...
Financing Deficit Garlington Technologies Inc.'s 2016 financial
statements are shown below: Balance Sheet as of December 31, 2016
Cash $ 180,000 Accounts payable $ 360,000 Receivables 360,000 Notes
payable 156,000 Inventories 720,000 Line of credit 0 Total current
assets $1,260,000 Accruals 180,000 Fixed assets 1,440,000 Total
current liabilities $ 696,000 Common stock 1,800,000 Retained
earnings 204,000 Total assets $2,700,000 Total liabilities and
equity $2,700,000 Income Statement for December 31, 2016 Sales
$3,600,000 Operating costs 3,279,720 EBIT $ 320,280 Interest 18,280...
Watson’s revised pro forma
cost of goods sold statement will report direct materials purchased
of
A....
Watson’s revised pro forma
cost of goods sold statement will report direct materials purchased
of
A.
$11,400,000
B.
$11,600,000
C.
$11,800,000
D.
$12,120,000
The following information was
adapted from a question on Part 4 of the December 1990 CMA
examination that concerned preparation of a pro forma statement of
cost of goods sold. The following is Watson Corporation’s pro forma
statement of cost of goods sold for the year ended August 31, Year
2.
Watson Corporation
Pro Forma Statement of...