Balance Sheet and Income Statement ASSETS 2015 2014 CASH AND MARKETABLE SECURITI
ID: 2537757 • Letter: B
Question
Balance Sheet and Income Statement
ASSETS
2015
2014
CASH AND MARKETABLE SECURITIES
29,000
25,000
ACCOUNTS RECEIVABLE
116,000
100,000
INVENTORIES
145,000
125,000
CURRENT ASSETS
290,000
250,000
GROSS PLANT AND EQUIPMENT
362,000
350,000
LESS: ACCUMULATED DEPRECIATION
130,000
100,000
NET FIXED ASSETS
232,000
250,000
TOTAL ASSETS
522,000
500,000
LIABILITIES AND EQUITY
ACCOUNTS PAYABLE
90,480
78,000
ACCRURALS
34,800
30,000
NOTES PAYABLE
25,420
34,000
CURRENT LAIBILITIES
150,700
142,000
LONG TERM DEBT
145,000
140,000
TOTAL LIABILITIES
295,700
282,000
COMMON STOCK ($1.00 par)
150,000
150,000
RETAINED EARNINGS
76,300
68,000
TOTAL OWNER’S EQUITY
226,300
218,000
TOTAL LIABILITIES AND EQUITY
522,000
500,000
INCOME STATEMENT
2015
2014
NET REVENUES & SALES (100,000 UNITS)
812,000
700,000
COST OF GOODS SOLD
522,000
450,000
GROSS PROFIT
290,000
250,000
FIXED OPERATING EXPENSES (pre depreciation)
174,200
151,000
EBITDA Earnings Before Interest, Taxes, Depreciation & Amortization
115,800
99,000
DEPRECIATION EXPENSE
30,000
25,000
OPERATING INCOME (EBIT)
85,800
74,000
INTEREST
14,500
14,000
INCOME BEFORE TAXES (EBT)
71,300
60,000
INCOME TAXES (40%)
28,520
24,000
NET INCOME
42,780
36,000
Dividends
34,480
28,500
Retained Earnings
8,300
7,500
NUMBER OF SHARES OUTSTANDING
50,000
50,000
Dividends per share
0.6896
0.57
You have been tasked to prepare a Pro-forma income statement and balance sheet for next year projecting a 20% increase in sales.
The firm's tax rate is 40%
Assume the company will operate at 100% capacity.
Calculate the firms new level of net income at 100% capacity [ Select ] ["$50,306", "$42,551", "$56,187", "$53,076"]
Calculate the firm,s new level of Total assets at 100% capacity [ Select ] ["$626,400", "$728,145", "$647,933", "$612,555"] .
Balance Sheet and Income Statement
ASSETS
2015
2014
CASH AND MARKETABLE SECURITIES
29,000
25,000
ACCOUNTS RECEIVABLE
116,000
100,000
INVENTORIES
145,000
125,000
CURRENT ASSETS
290,000
250,000
GROSS PLANT AND EQUIPMENT
362,000
350,000
LESS: ACCUMULATED DEPRECIATION
130,000
100,000
NET FIXED ASSETS
232,000
250,000
TOTAL ASSETS
522,000
500,000
LIABILITIES AND EQUITY
ACCOUNTS PAYABLE
90,480
78,000
ACCRURALS
34,800
30,000
NOTES PAYABLE
25,420
34,000
CURRENT LAIBILITIES
150,700
142,000
LONG TERM DEBT
145,000
140,000
TOTAL LIABILITIES
295,700
282,000
COMMON STOCK ($1.00 par)
150,000
150,000
RETAINED EARNINGS
76,300
68,000
TOTAL OWNER’S EQUITY
226,300
218,000
TOTAL LIABILITIES AND EQUITY
522,000
500,000
INCOME STATEMENT
2015
2014
NET REVENUES & SALES (100,000 UNITS)
812,000
700,000
COST OF GOODS SOLD
522,000
450,000
GROSS PROFIT
290,000
250,000
FIXED OPERATING EXPENSES (pre depreciation)
174,200
151,000
EBITDA Earnings Before Interest, Taxes, Depreciation & Amortization
115,800
99,000
DEPRECIATION EXPENSE
30,000
25,000
OPERATING INCOME (EBIT)
85,800
74,000
INTEREST
14,500
14,000
INCOME BEFORE TAXES (EBT)
71,300
60,000
INCOME TAXES (40%)
28,520
24,000
NET INCOME
42,780
36,000
Dividends
34,480
28,500
Retained Earnings
8,300
7,500
NUMBER OF SHARES OUTSTANDING
50,000
50,000
Dividends per share
0.6896
0.57
BALANCE SHEET 2015 2014 INCOME STATEMENT 2015 2014 ASSETS 29,000 116,000 145,000 290,000 362,000 130,000 232,000 522,000 25,000 100,000 125,000 250,000 300,000 100,000 200,000 500,000 CASH AND MARKETABLE SECURITIES CCOUNTS RECEIVABLE NET REVENUES & SALES (100,000 812,000 700,000 UNITS ENTORIES CURRENT ASSETS COST OF GOODS SOLD 522,000 T 290,000 FIXED OPERATING EXPENSES (pre 174,200 450,000 250,000 151,000 ROSS PLANT AND EOUIPMENT ESS: ACCUMULATED DEPRECIATION GROSS PROFI NET FIXED ASSETS TOTAL ASSETS depreciation) DEPRECIATION EXPENSE 30,000 85,800 14,500 71,300 28,520 42,780 25,000 74,000 14,000 60,000 24,000 36,000 OPERATING INCOME (EBIT) LIABILITIES AND EQUITY INTEREST INCOME BEFORE TAXES (EBT) INCOME TAXES (40%) NET INCOME 78,000 30,000 34,000 142,000 140,000 282,000 50,000 68,000 218,000 ACCOUNTS PAYABLE 90.480 34,800 25,420 150,700 145,000 295,700 150,000 76,300 226,300 CCRURALS OTES PAYABLE CURRENT LAIBILITIES LONG TERM DEBT TOTAL LIABILITIES NUMBER OF SHARES OUTSTANDING 50,000 50,000 COMMON STOCK ($1.00 par TAINED EARNINGS TOTAL OWNER'S EQUITY TOTAL LIABILITIES AND EQUITY 522,000 500,000Explanation / Answer
Working
1. Cost of goods sold is considered 64.2857 percent of sales as per previous year.
2. depreciation for current year is 10 percent as per last year is 36200.
3. fixed exps with depreciation is 39.1187 percent of COGS as per last year so it will be 39.1187 percent of 626400 = 245040
4. fixes expense without dep will be 245040- 36200 = 208840
5. interest in 10 percent of closing value of long term debt in 2015
6. inventory in 27.7777 percent of COGS as per in last year and it will be 27.7777 % of 626400 = 174000
7. Acc Rec in 14.2857 percent of sales ie 139200
8. Acc payable is 17.3333 percent of COGS ie 108575
9. Accurals in 17.04 percent of fixed exps ie 17.04 % of 245040 = 41755
10. Dividend is 80.60 percent of net income so for 2016 will be 80.60 % of 53076 = 42780
11. sales is increased by 20 percent on 2015 sales.
12. cash is derived as balance figure in balance sheet.
there is a difference in figure of gross plant in equipment in data u have entered twice we have used the data that is given in separetly shown balance sheet to calculate depreciation rate.
Income Statment 2016 Net Revenue & Sales 974400 Cost of goods Sold 626400 Gross Profit 348000 Fixed Operating Expenses 208840 Depreciation Exps. 36200 Operating Income EBIT 102960 Interest 14500 Income Before Tax 88460 Income Tax 40% 35384 Net Income 53076 Dividend @ 80.60 percent of Net Income 42780 Retained Earning 10296Related Questions
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