Question

PIE Pro-forma Income Statement For the Year Ended Dec. 31, 2016 2017* 2016 2015 Sales Cost of Goods Sold Gross Profit Selling and G&A Expenses Fixed Expenses Depreciation Expense EBIT Interest Expense Earnings Before Taxes Taxes Net Income 5,104.003,850.00 3,432.00 4,283.93 3,250.00 2,864.00 84.42% 83.45% 83.93% EXAMPLE 820.07 600.00 568.00 330.30240.00 100.00 18.90 149.70 209.10 62.50 73.70 146.60 58.64 87.96 100.00 20.00 Using the Percent-of-Sales Method from page 108 complete the Proforma Income Statement and Balance Sheet PIE plans on purchasing a $50,000 piece of equipment. Does this cause a problem with the Balance Sheet. How could we fix it? 76.00 29.48 44.22 Forecast Notes: Tax Rate Additional Depreciation Interest Rate 40% 5.00 40%

Net Addition to Plant & Equipment; 50.00

Life of New Equipment in Years: 10

New Depreciation (Straight Line): 5.00

Answer 1

P PI E fa。.. dern a Statement Income Fer the year ended Dec31, 2016 artcularS Sales 5104 0 3 85o co ost f ceds sold 428 3 93 3a 5o oo Gross Roit 8 20 07 60o oo 33 so o Fixed epense Depreciation nterest espese7 76.00 76O Earning Ta x es rere S IS 73.70 befo Taxes Net Income 「108-691 4.2.2 1g53%。 ted 510 ( Sellin rd (r A expense not varty as per Sal es al les) ơn expense inot ar akidnS atton iforna Balance sheet As od Dec 3, 2ot6 Sa les Cash A ccounts Inventor es-941 52 52-Kleo 1-35% - receivabie 53 aseets Plant Eeyuinment derreciastion Assets So to Fved uret reciahon B.O 2096.8 gales toi es2617 s0y Sales ear 2017 又32.26 | 中7520 |存175.200m 3850 Notes as able Other curet 14 00140 co 424,61 + ghe et tous ch is the COimon Stock Retained earning 3349 2a s THO shareholdets子94-99 | 68S,99 ム60 | 60 , 001 aditional red ncun o 80 廾 Accounts payable is 4.ssソ·의 s104 (salu. /b 4 Notes payabteoter current liabilises o Relained rie is 2lo8 curr 20 oill not au oill not oy fosn cok will also nof vacy loith sales ear 20 ed incoNe 宋 &子9.09 is &ternal Finance Requiped to r the usiness
PIE PIE Fer the vear ended Dec 31, 2016 Particulors Sales 8 016 5104 0ol 385o 0o Cost of acods sold 4283.93 3a So o0 33o so Selling and 6 A Fixed erpense oo1oo o0 Dep reciaHon 2s 00 nterest erpense 600 76 oo redore 13-S 1370 72 469 48 168 69 .22 Earni Ta es Tases Net Income Sales) not ras par sales Fi expense ond p y change on te on acour ition e iade to Fixed Interest Esense will not vary assumed o.s some as revious car Tax is calculated at 서。 , 181, -2 ,46 eed