Question

Please generate an income and balance sheet for 2007. 2007 is projected to have net sales of 2.7 million

4179 Jones Electrical Distribution Exhibit 1 Operating Statements for Years Ending December 31, 2004-2006, and for First Quarter 2007 (thousands of dollars) 2004 2005 2006 Net sales Cost of goods sold Gross profit on sales $ 2.242 $ 1,818 $1,624 $ 1,304 $_320 $ 272 First Quarter 2007 $ 608 $ 499 $ 102 $ 1,916 $1,535 $ 381 $ 307 $ 30 $ 44 $ 15 $ 29 $_424 $ 347 $ 31 $ 46 $94 Operating expenseb Interest expense Net income before taxes Provision for income taxes $ 8 $ 21 Net income In the first quarter of 2006, sales were $514,000 and net income was $4,000. Operating expenses include a normal level of cash salary for Mr. Jones in all periods

Answer 1

Appendix A: Projected Income Statement with and without trade discount for 2007 Income Statement Net Sales Cost of Goods Sold Gross Profit on Sales 2007A $2,700,000 $2,190,000 $510,000 $418,000 $31,000 $61,000 $21,000 Operating Expenses Interest Expense Net Income Before Taxes Provision for Income Taxes 2007B $2,700,000 $2,244,000 $456,000 $418,000 $31,000 $7,000 $2,000 $5,000 Net Income $40,000

Appendix B: Projected Balance Sheet with and without trade discount for 2007 Balance Sheet 2007 A 2007 B Cash Accounts Receivable Inventory Total Current Assets 2006 $23,000 $264,000 $379,000 $666,000 $23,000 $318,000 $456,000 $797,000 $23,000 $318,000 $467,000 $808,000 PPE Accumulated Depreciation Total PPE(Net) Total Assets $252,000 $(134,000) $118,000 $784,000 $252,000 $(134,000) $118,000 $915,000 $252,000 $(134,000) $118,000 $926,000 Accounts Payable Line of Credit Payable Accrued Expenses IT Debt, Current Portion Total Current liabilities IT Debt Total liabilities $120,000 $249,000 $14,000 $24,000 $407,000 $134,000 $541,000 $60,000 $424,000 $14,000 $24,000 $523,000 $110,000 $633,000 $184,000 $347,000 $14,000 $24,000 $569,000 $110,000 $679,000 Net Worth Total liabilities and Net Worth $243,000 $784,000 $282,000 $915,000 $247,000 $926,000 4,000