Pro forma balance sheet. Next year, California Cement Company will increase its plant, property, and equipment by $6,065,000 with a plant expansion. The inventories will grow by 82%, accounts receivable will grow by 69%, and marketable securities will be reduced by 65% 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 retainedearnings). Using this information and the balance sheet , 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? Complete the pro-forma balance sheet for 2014 below: (Round to the nearest dollar.) California Cement Company Balance Sheet for the Year Ending December 31, 2013 ASSETS LIABILITIES Current assets Current liabilities Cash $ 1,471,000 Accounts payable $ 6,146,000 Marketable securities $ 1,169,000 Other current liabilities $ 1,174,000 Accounts receivable $ 3,740,000 Total current liabilities $ 7,320,000 Inventories $ 2,634,000 Long-term liabilities Total current assets $ 9,014,000 Long-term debt $ 2,417,000 Long-term assets Other long-term liabilities $ 1,551,000 Plant, property, and equipment $ 6,788,000 Total long-term liabilities $ 3,968,000 Goodwill $ 4,054,000 Total liabilities $ 11,288,000 Intangible assets $ 1,509,000 OWNERS' EQUITY Total long-term assets $ 12,351,000 Common stock $ 2,422,000 Retained earnings $ 7,655,000 Total owners' equity $ 10,077,000 TOTAL LIABILITIES AND TOTAL ASSETS $ 21,365,000 OWNERS' EQUITY $ 21,365,000 California Cement Company Pro Forma Balance Sheet for the Year Ending December 31, 2014 ASSETS LIABILITIES Current assets Current liabilities Cash $ ? Accounts payable $ ? Marketable securities $ ? Other current liabilities $ ? Accounts receivable $ ? Total current liabilities $ ? Inventories $ ? Long-term liabilities Total current assets $ ? Long-term debt $ ? Long-term assets Other long-term liabilities $ ? Plant, property, and equipment $ ? Total long-term liabilities $ ? Goodwill $ ? Total liabilities $ ? Intangible assets $ ? OWNERS' EQUITY Total long-term assets $ ? Common stock $ ? Retained earnings $ ? Total owners' equity $ ? TOTAL LIABILITIES AND TOTAL ASSETS $ ? OWNERS' EQUITY $ ? How much additional debt will be estimated using this pro forma balance sheet? (Round to the nearest dollar.)

Pro forma balance sheet. Next year, California Cement Company will increase its plant, property, and equipment by $6,065,000 with a plant expansion. The inventories will grow by 82%, accounts receivable will grow by 69%, and marketable securities will be reduced by 65% 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 retainedearnings). Using this information and the balance sheet , 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? Complete the pro-forma balance sheet for 2014 below: (Round to the nearest dollar.) California Cement Company Balance Sheet for the Year Ending December 31, 2013 ASSETS LIABILITIES Current assets Current liabilities Cash $ 1,471,000 Accounts payable $ 6,146,000 Marketable securities $ 1,169,000 Other current liabilities $ 1,174,000 Accounts receivable $ 3,740,000 Total current liabilities $ 7,320,000 Inventories $ 2,634,000 Long-term liabilities Total current assets $ 9,014,000 Long-term debt $ 2,417,000 Long-term assets Other long-term liabilities $ 1,551,000 Plant, property, and equipment $ 6,788,000 Total long-term liabilities $ 3,968,000 Goodwill $ 4,054,000 Total liabilities $ 11,288,000 Intangible assets $ 1,509,000 OWNERS' EQUITY Total long-term assets $ 12,351,000 Common stock $ 2,422,000 Retained earnings $ 7,655,000 Total owners' equity $ 10,077,000 TOTAL LIABILITIES AND TOTAL ASSETS $ 21,365,000 OWNERS' EQUITY $ 21,365,000 California Cement Company Pro Forma Balance Sheet for the Year Ending December 31, 2014 ASSETS LIABILITIES Current assets Current liabilities Cash $ ? Accounts payable $ ? Marketable securities $ ? Other current liabilities $ ? Accounts receivable $ ? Total current liabilities $ ? Inventories $ ? Long-term liabilities Total current assets $ ? Long-term debt $ ? Long-term assets Other long-term liabilities $ ? Plant, property, and equipment $ ? Total long-term liabilities $ ? Goodwill $ ? Total liabilities $ ? Intangible assets $ ? OWNERS' EQUITY Total long-term assets $ ? Common stock $ ? Retained earnings $ ? Total owners' equity $ ? TOTAL LIABILITIES AND TOTAL ASSETS $ ? OWNERS' EQUITY $ ? How much additional debt will be estimated using this pro forma balance sheet? (Round to the nearest dollar.)

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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California Cement Company
Balance Sheet for the Year Ending December 31, 2013
ASSETS			LIABILITIES
Current assets			Current liabilities
Cash	$	1,471,000	Accounts payable	$	6,146,000
Marketable securities	$	1,169,000	Other current liabilities	$	1,174,000
Accounts receivable	$	3,740,000	Total current liabilities	$	7,320,000
Inventories	$	2,634,000	Long-term liabilities
Total current assets	$	9,014,000	Long-term debt	$	2,417,000
Long-term assets			Other long-term liabilities	$	1,551,000
Plant, property, and equipment	$	6,788,000	Total long-term liabilities	$	3,968,000
Goodwill	$	4,054,000	Total liabilities	$	11,288,000
Intangible assets	$	1,509,000	OWNERS' EQUITY
Total long-term assets	$	12,351,000	Common stock	$	2,422,000
			Retained earnings	$	7,655,000
			Total owners' equity	$	10,077,000
			TOTAL LIABILITIES AND
TOTAL ASSETS	$	21,365,000	OWNERS' EQUITY	$	21,365,000