#11 Using table 13, create a pro forma balance sheet using the percentage of sales method. If net income next year is $50,000, answer the following: a. How much did the owners take out of the business? b. What is the profit margin for next year?
#11 Using table 13, create a pro forma balance sheet using the percentage of sales method. If net income next year is $50,000, answer the following: a. How much did the owners take out of the business? b. What is the profit margin for next year?
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 51E: Juroe Company provided the following income statement for last year: Juroes balance sheet as of...
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Hi need help with a & b.
a. How much did the owners take out of the business?
b. What is the profit margin for next year?
Transcribed Image Text:#11 Using table 13, create a pro forma balance sheet using the percentage of sales method.
If net income next year is $50,000, answer the following:
a. How much did the owners take out of the business?
b. What is the profit margin for next year?
TABLE 13 Pro forma Balance Sheet Using Percentage of Sales
Total Sales
Forecast Sales Net Year
Current Year
Percentage of
Sales (%)
$275,000
$350,000
Assets
Current Assets:
Cash
5,694
2.07%
7,247
Accounts Receivable
19,662
7.15%
25,024
Inventory
3,381
1.23%
4,303
Total Current Assets
$28,737
10.45%
36,574
Fixed Assets
Furniture & Fixtures
5,595
2.03%
7,121
Transportation Equipment
25,456
9.26%
32,399
$31,051
$59,788
Total Fixed Assets
11.29%
39,519
Total Assets
21.74%
76,094
Liabilities & Owner's Equity
Current Liabilities
Notes Payable
$15,456
5.62%
19,671
Accrues Taxes Payable
Total Current Liabilities
Long-Term Debt
Total Liabilities
Owner's Equity
3,598
$19,054
1.31%
4,579
6.93%
24,251
18,654
6.78%
23,741
$37,708
13.71%
47,992
22,080
8.03%
28,102
Total Liabilities & Owner's E
$59,788
21.74%
76,094
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