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Pro forma balance sheet. Next year, California Cement Company will increase its

ID: 2801570 • Letter: P

Question

Pro forma balance sheet. Next year, California Cement Company will increase its plant, property, and equipment by $6,069,000 with a plant expansion. The in er ones wil grow by 75%, accounts receivable will grow by 72% and marketable securities be reduced by 61% to help finance the expansion Assume all other asset accounts will remain the same and the company will use long-term debt to finance the remaining expansion costs (no change in common stock or earnings). Using this information and the balance sheet in the popup window, EE9.for California Cement Company for 2013, prepare a pro forma balance sheet for 2014. How much additional debt will the company need using this pro forma balance sheet? retained Complete the pro-forma balance sheet for 2014 below: (Round to the nearest dollar.) California Cement Company Pro Forma Balance Sheet for the Year Ending December 31, 2014 ASSETS LIABILITIES Current assets Current liabilities Accounts payable Cash Marketable securities Accounts receivable Other current liabilities Total current liabilities Long-term liabilities Long-term debt Other long-term liabilities Total current assets Long-term assets Enter any number in the edit fields and then continue to the next question.

Explanation / Answer

Balance Sheet

current assets

current liabilities

cash

1494000

A/P

6128000

marketable securities

1181000

other current liabilities

1139000

accounts receivables

3763000

total of current liabilities

7267000

inventory

2600000

long term liabilities

total of current assets

9038000

long term debt

2437000

Long term asssets

other long term liabilities

1549000

plant property and equipment

6708000

total long term liabilties

3986000

goodwill

4035000

totalliabilities

11253000

intangible assets

1510000

owners equity

total of long term assets

12253000

common stock

2418000

retained earnings

7620000

total of shareholders equity

10038000

total assets

21291000

total of liabilities and shareholders equity

21291000

Proforma Balance sheet

Assets

Liabilities

current assets

previous year

projected

Projected

current liabilities

previous

projected

projected

cash

1494000

1494000

A/P

6128000

6128000

marketable securities

1181000

460590

other current liabilities

1139000

1139000

accounts receivables

3763000

6472360

total of current liabilities

7267000

inventory

2600000

4550000

long term liabilities

total of current assets

12976950

long term debt

2437000

12444950

Long term asssets

other long term liabilities

1549000

1549000

plant property and equipment

6708000

12777000

total long term liabilties

13993950

goodwill

4035000

4035000

total liabilities

21260950

intangible assets

1510000

1510000

owners equity

total of long term assets

18322000

common stock

2418000

2418000

retained earnings

7620000

7620000

total of shareholders equity

10038000

total assets

31298950

total of liabilities and shareholders equity

21291000

31298950

amount of additional debt

new level of long term debt-old level of long term debt

12444950-2437000

10007950

Additional amount of long term debt

previous year

projected

increase

accounts receivables

3763000

6472360

2709360

inventory

2600000

4550000

1950000

marketable securities

1181000

460590

-720410

plant property and equipment

6708000

12777000

6069000

total amount of debt required

10007950

Balance Sheet

current assets

current liabilities

cash

1494000

A/P

6128000

marketable securities

1181000

other current liabilities

1139000

accounts receivables

3763000

total of current liabilities

7267000

inventory

2600000

long term liabilities

total of current assets

9038000

long term debt

2437000

Long term asssets

other long term liabilities

1549000

plant property and equipment

6708000

total long term liabilties

3986000

goodwill

4035000

totalliabilities

11253000

intangible assets

1510000

owners equity

total of long term assets

12253000

common stock

2418000

retained earnings

7620000

total of shareholders equity

10038000

total assets

21291000

total of liabilities and shareholders equity

21291000

Proforma Balance sheet

Assets

Liabilities

current assets

previous year

projected

Projected

current liabilities

previous

projected

projected

cash

1494000

1494000

A/P

6128000

6128000

marketable securities

1181000

460590

other current liabilities

1139000

1139000

accounts receivables

3763000

6472360

total of current liabilities

7267000

inventory

2600000

4550000

long term liabilities

total of current assets

12976950

long term debt

2437000

12444950

Long term asssets

other long term liabilities

1549000

1549000

plant property and equipment

6708000

12777000

total long term liabilties

13993950

goodwill

4035000

4035000

total liabilities

21260950

intangible assets

1510000

1510000

owners equity

total of long term assets

18322000

common stock

2418000

2418000

retained earnings

7620000

7620000

total of shareholders equity

10038000

total assets

31298950

total of liabilities and shareholders equity

21291000

31298950

amount of additional debt

new level of long term debt-old level of long term debt

12444950-2437000

10007950

Additional amount of long term debt

previous year

projected

increase

accounts receivables

3763000

6472360

2709360

inventory

2600000

4550000

1950000

marketable securities

1181000

460590

-720410

plant property and equipment

6708000

12777000

6069000

total amount of debt required

10007950

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