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? #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 SalesTotal SalesForecast Sales Net YearCurrent YearPercentage ofSales (%)$275,000$350,000AssetsCurrent Assets:Cash5,6942.07%7,247Accounts Receivable19,6627.15%25,024Inventory3,3811.23%4,303Total Current Assets$28,73710.45%36,574Fixed AssetsFurniture & Fixtures5,5952.03%7,121Transportation Equipment25,4569.26%32,399$31,051$59,788Total Fixed Assets11.29%39,519Total Assets21.74%76,094Liabilities & Owner's EquityCurrent LiabilitiesNotes Payable$15,4565.62%19,671Accrues Taxes PayableTotal Current LiabilitiesLong-Term DebtTotal LiabilitiesOwner's Equity3,598$19,0541.31%4,5796.93%24,25118,6546.78%23,741$37,70813.71%47,99222,0808.03%28,102Total Liabilities & Owner's E$59,78821.74%76,094

How much did the owners take out from the business: To calculate that, we need to take into…

#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?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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