Explain the steps necessary to develop a pro forma income statement and a pro forma balance sheet.
Explain the steps necessary to develop a pro forma income statement and a pro forma balance sheet.
Homework Answers
| The correct sequence of events is as follows; |
| Pro forma Cash budget - Pro forma Income Statement - Pro forma Balance Sheet |
| The correct sequence is not listed in the given answer choices, |
| Therefore, the answer is (D) None of the above. |
Add Answer to:
Explain the steps necessary to develop a pro forma income statement and a pro forma balance sheet.
1a. Pro Forma Income Statement Prepare a pro forma income statement and balance sheet for Thibodaux...
1a. Pro Forma Income Statement Prepare a pro forma income statement and balance sheet for Thibodaux Inc. for 2020. For the Pro Forma Income Statement 2020: SALES = increase of 18.25% over 2019, 2019 Sales were $6,765,328 Gross Profit margin 60%, There are No Preferred Stock, OTHER EXP $1,500,000, Depreciation $500,000, Interest $600,000, Taxes 50%, Common Stock Dividend Payout Ratio 40% of Net Income 2019 Pro Forma IS 2020 Pro Forma IS Thibodaux Inc. Thibodaux Inc. Sales $6,765,328 $8,000,000 Cost...
Current Attempt in Progress Empire Enterprises: Pro Forma Income Statement and Balance Sheet ($ millions) EXHIBIT...
Current Attempt in Progress Empire Enterprises: Pro Forma Income Statement and Balance Sheet ($ millions) EXHIBIT 19.10 The pro forma balance sheet for Empire Enterprises does not balance, and the differe nce is the amount of EFN. Because the company's board does not wish to issue common stock, the funding will have to take the form of long-term debt. Income Statement (Pro Forma) Net sales $120.0 180.0 $12.0 Costs Net income $ 7.2 Dividends Addition to retained earnings $4.8 Balance...
Pro forma Income Statement & Balance Sheet for Radial Inc. This exper...
Pro forma Income Statement & Balance Sheet for Radial Inc. This experiential exercise involves creating a pro forma Balance Sheet and a pro forma Income Statement for Radial Inc. Assume the current year is 2015. To assist you in this endeavor, an Excel worksheet containing Radial'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...
This exercise involves creating a pro forma Balance Sheet and a pro forma Income Statement for...
This exercise involves creating a pro forma Balance Sheet and a pro forma Income Statement for JetBlue Inc. To assist you in this endeavor, a worksheet containing JetBlue’s 2011 Income Statement and Balance Sheet has been provided. Develop the two pro forma financial statements for 2012 based upon the following assumptions. The company plans to increase sales by an additional 10 percent in 2012 due to minor price increases. In addition,the firm plans to launch a massive marketing campaign in...
Using the following income statement and balance sheet, create a pro-forma income statement and balance sheet....
Using the following income statement and balance sheet, create a pro-forma income statement and balance sheet. Assume a growth rate of 30%, and that the tax rate and dividend payout remain constant. Costs, assets, and accounts payable vary with sales, but the others do not, and the company is operating at 100% capacity. Use this information to answer the first 5 questions: HOFFMAN COMPANY Income Statement Sales 52,000.00 Costs 41,080.00 Taxable Income 10,920.00 Taxes (32%) 3,494.00 Net Income 7,426.00 Dividends...
Explain the purpose of a pro forma statement. What are the three questions it answers? What...
Explain the purpose of a pro forma statement. What are the three questions it answers? What critical information is needed to develop an accurate pro forma statement.
The sales forecast for 2014 is------------------------ The pro forma income statement for 2014 is................. Pro forma...
The sales forecast for 2014
is------------------------
The pro forma income statement for 2014 is.................
Pro forma income statement. Given the income statement in the popup window, for California Cement Company for 2013 and an expected sales growth rate of 7.01% for 2014, prepare a pro forma income statement for 2014. First, find the percentage of each income statement line from 2013 as a percent of sales. (Round to three decimal places.) $ % % California Cement Company Income Statement for...
Pro forma Income Statement 6-8. The balance sheet of Free Enterprises, Inc., at the end of...
Pro forma Income Statement 6-8. The balance sheet of Free Enterprises, Inc., at the end of 2018 follows. Assets Cash Accounts Receivable Inventory Prepaid Expenses Total Current Assets Fixed Assets Total Assets Free Enterprises, Inc. Balance Sheet, Dec. 31, 2018 (Thousands of Dollars) Liabilities + Equity $ 4,000 Accounts Payable $ 4,400 10.000 Notes Payable 4,000 13,000 Accrued Expenses 5,000 400 Total Current Liabilities 13,400 27,400 Bonds Payable 6,000 11,000 Common Equity 19,000 $ 38,400 Total Liabilities and Equity $...
Pro forma balance sheet-Basic Leonard Industries wishes to prepare a pro forma balance sheet for December...
Pro forma balance sheet-Basic Leonard Industries wishes to prepare a pro forma balance sheet for December 31, 2020. The firm expects 2020 sales to total $3,000,000. The following information has been gathered (1) A minimum cash balance of $49,500 is desired (2) Marketable securities are expected to remain unchanged. (3) Accounts receivable represent 10.1% of sales. (4) Inventories represent 12.1% of sales. (5) A new machine costing $90,200 will be acquired during 2020. Total depreciation for the year will be...
Pro forma balance sheet: Basic Leonard Industries wishes to prepare a pro forma balance sheet for...
Pro forma balance sheet: Basic Leonard Industries wishes to prepare a pro forma balance sheet for December 31, 2020. The firm expects 2020 sales to total $3,000,000. The following information has been gathered: (1) A minimum cash balance of $50,000 is desired. (2) Marketable securities are expected to remain unchanged. (3) Accounts receivable represent 10% of sales. (4) Inventories represent 12% of sales. (5) A new machine costing $90,000 will be acquired during 2020. Total deprecia- tion for the year...
Current Attempt in Progress Empire Enterprises: Pro Forma Income Statement and Balance Sheet ($ millions) EXHIBIT 19.10 The pro forma balance sheet for Empire Enterprises does not balance, and the differe nce is the amount of EFN. Because the company's board does not wish to issue common stock, the funding will have to take the form of long-term debt. Income Statement (Pro Forma) Net sales $120.0 180.0 $12.0 Costs Net income $ 7.2 Dividends Addition to retained earnings $4.8 Balance...
Using the following income statement and balance sheet, create a pro-forma income statement and balance sheet. Assume a growth rate of 30%, and that the tax rate and dividend payout remain constant. Costs, assets, and accounts payable vary with sales, but the others do not, and the company is operating at 100% capacity. Use this information to answer the first 5 questions: HOFFMAN COMPANY Income Statement Sales 52,000.00 Costs 41,080.00 Taxable Income 10,920.00 Taxes (32%) 3,494.00 Net Income 7,426.00 Dividends...
The sales forecast for 2014
is------------------------
The pro forma income statement for 2014 is.................
Pro forma income statement. Given the income statement in the popup window, for California Cement Company for 2013 and an expected sales growth rate of 7.01% for 2014, prepare a pro forma income statement for 2014. First, find the percentage of each income statement line from 2013 as a percent of sales. (Round to three decimal places.) $ % % California Cement Company Income Statement for...
Pro forma Income Statement 6-8. The balance sheet of Free Enterprises, Inc., at the end of 2018 follows. Assets Cash Accounts Receivable Inventory Prepaid Expenses Total Current Assets Fixed Assets Total Assets Free Enterprises, Inc. Balance Sheet, Dec. 31, 2018 (Thousands of Dollars) Liabilities + Equity $ 4,000 Accounts Payable $ 4,400 10.000 Notes Payable 4,000 13,000 Accrued Expenses 5,000 400 Total Current Liabilities 13,400 27,400 Bonds Payable 6,000 11,000 Common Equity 19,000 $ 38,400 Total Liabilities and Equity $...
Pro forma balance sheet-Basic Leonard Industries wishes to prepare a pro forma balance sheet for December 31, 2020. The firm expects 2020 sales to total $3,000,000. The following information has been gathered (1) A minimum cash balance of $49,500 is desired (2) Marketable securities are expected to remain unchanged. (3) Accounts receivable represent 10.1% of sales. (4) Inventories represent 12.1% of sales. (5) A new machine costing $90,200 will be acquired during 2020. Total depreciation for the year will be...
Pro forma balance sheet: Basic Leonard Industries wishes to prepare a pro forma balance sheet for December 31, 2020. The firm expects 2020 sales to total $3,000,000. The following information has been gathered: (1) A minimum cash balance of $50,000 is desired. (2) Marketable securities are expected to remain unchanged. (3) Accounts receivable represent 10% of sales. (4) Inventories represent 12% of sales. (5) A new machine costing $90,000 will be acquired during 2020. Total deprecia- tion for the year...
Most questions answered within 3 hours.
-
Which of the following is true?
Select one:
a. The existence of generally accepted accounting principles...
asked 2 minutes ago -
CORPORATE FINANCE
STATEMENT: If the total risk of a stock is high you can
expect the...
asked 1 minute ago -
What are the three characteristics of traditional "neighbor
ethics" that Jonas isolates, and in what respects...
asked 3 minutes ago -
According to the manufacturer of a certain candy, 9% of the
candy produced are red. If...
asked 5 minutes ago -
A rectangular block that is 0.6m wide, 0.6m long and 1.2m high
stands on a horizontal...
asked 12 minutes ago -
3. Assume that a mining company that produces ore sells its
product for $40 per ton....
asked 5 minutes ago -
A near sighted person wears corrective glasses made of a
diverging lens with a focal length...
asked 7 minutes ago -
If a benzene ring has one -CF3 group as a
substituent, will the next substituent add...
asked 11 minutes ago -
You work for several accountants who are hosting a public
seminar on recent changes to tax...
asked 24 minutes ago -
A Eucher Deck consists of 24 cards. In a four- player game, each
player is dealt...
asked 21 minutes ago -
Describe and draw the mechanism for the formation of the
Grignard reagent with 2-bromopropane as the...
asked 36 minutes ago -
Write which type of radiation (alpha, beta, gamma, or positron)
matches the following
descriptors. Each type...
asked 35 minutes ago