Question 4 ### Pro Forma Income Statement**Objective**: Given the income statement for California Cement Company for 2013 and an expected sales growth rate of 7.38% for 2014, prepare a pro forma income statement for 2014.---#### Step 1: Calculate Sales Forecast for 2014- **Net income for 2013**: $3,143,016- **Sales growth rate 2014**: 7.38%- **Sales revenue 2013**: $22,817,000**Formula**: \[ \text{Sales Forecast for 2014} = \text{Sales Revenue 2013} \times (1 + \text{Sales Growth Rate}) \]**Calculate**:\[ \text{Sales Forecast for 2014} = \$22,817,000 \times 1.0738 = \$24,503,336 \]---#### Pro Forma Income Statement for 2014 (Round to nearest dollar)**California Cement Company**| **Description** | **2014 (in $)** ||---------------------------------------------|-----------------|| Sales revenue | 24,503,336 || Cost of goods sold | 12,500,480 || Selling, general, and administrative expenses| 4,297,096 || Depreciation expenses | 1,487,633 || EBIT (Earnings Before Interest and Taxes) | 6,218,127 || Interest expense | 186,221 || Taxable income | 6,031,906 || Taxes | 2,888,890 || **Net income** | **3,143,016** |---### Explanation of Components:1. **Sales Revenue**: Calculated by applying the growth rate to the previous year’s sales.2. **Cost of Goods Sold (COGS)**: Traditionally a percentage of sales, increased similarly with the sales forecast.3. **Selling, General, and Administrative Expenses**: Typically a constant ratio of sales, adjusted based on the sales forecast.4. **Depreciation Expenses**: Assume a moderate increase reflecting capital investments.5. **EBIT**: Calculated as sales minus expenses prior to interest and taxes.6. **Interest Expense**: Reflects any anticipated change in company debt.7. **Taxes** **Pro Forma Income Statement for California Cement Company****Income Statement for 2013:**- **Sales Revenue**: $22,817,000- **Cost of Goods Sold**: -$11,660,000- **Selling, General, and Administrative Expenses**: -$4,002,000- **Depreciation Expenses**: -$1,386,000- **EBIT (Earnings Before Interest and Taxes)**: $5,769,000- **Interest Expense**: -$174,000- **Taxable Income**: $5,595,000- **Taxes**: -$2,451,984- **Net Income**: $3,143,016The task is to prepare a pro forma income statement for 2014 with a projected sales growth rate of 7.38%.**Questions:**1. **What is the sales forecast for 2014?** - Answer: (Round to the nearest dollar.)2. **The pro forma income statement for 2014 is:** - (Round to the nearest dollar.)**Data Table Explanation:**The table provided is a basic income statement for 2013 detailing the various financial metrics such as revenue, costs, and earnings. The goal is to anticipate these numbers for 2014 based on a specified growth rate, helping in financial planning and analysis.

A component of the financial statement of a company that provides information regarding the profit…

Pro forma income statement. Given the income statement in the popup window, E, for California Cement Company for 2013 and an expected sales growth rate of 7.38% for 2014, prepare a pro forma income statement for 2014. Net income 3,143,016 Data Table What is the sales forecast for 2014? $ (Round to the nearest dollar.) California Cement Company The pro forma income statement for 2014 is: (Round to the nearest dollar.) Income Statement for 2013 California Cement Company Sales revenue 22,817,00 Pro Forma Income Statement for 2014 Cost of goods sold -11,660,00 Sales revenue 100.00 Selling, general, and administrative expenses -4,002,00 Cost of goods sold 2$ 51.102 Depreciation expenses -1,386,00 EBIT Selling, general, and administrative expenses Depreciation expenses 17,540 5,769,00 6.074 Interest expense -174,00 EBIT 2$ 25.284 9 Taxable income 5,595,00 Interest expense 0.763 Taxes $4 -2,451,98 Taxable income 2$ 24.521 Net income 3,143,01 Taxes 2$ 10.746 Net income 13.775 Print Done Enter any number in the edit fields and then continue to the next question.

Pro forma income statement. Given the income statement in the popup window, E, for California Cement Company for 2013 and an expected sales growth rate of 7.38% for 2014, prepare a pro forma income statement for 2014. Net income 3,143,016 Data Table What is the sales forecast for 2014? $ (Round to the nearest dollar.) California Cement Company The pro forma income statement for 2014 is: (Round to the nearest dollar.) Income Statement for 2013 California Cement Company Sales revenue 22,817,00 Pro Forma Income Statement for 2014 Cost of goods sold -11,660,00 Sales revenue 100.00 Selling, general, and administrative expenses -4,002,00 Cost of goods sold 2$ 51.102 Depreciation expenses -1,386,00 EBIT Selling, general, and administrative expenses Depreciation expenses 17,540 5,769,00 6.074 Interest expense -174,00 EBIT 2$ 25.284 9 Taxable income 5,595,00 Interest expense 0.763 Taxes $4 -2,451,98 Taxable income 2$ 24.521 Net income 3,143,01 Taxes 2$ 10.746 Net income 13.775 Print Done Enter any number in the edit fields and then continue to the next question.

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

See similar textbooks

Similar questions

Answer this question general accounting
Please help me
Use the following information from Eiffel Company’s financial statements. 2018 IncomeStatement BalanceSheets Sales $309,000 Cost of Goods Sold (145,000) Operating Expenses, other than Depreciation Expense (27,000) Depreciation expense (16,000) Gain on Sale of Plant Assets 16,000 Net Income $137,000 Dec. 31,2018 Accounts Receivable $45,300 Inventory 1,600 Accounts Payable 22,500 Accured Liabilities 900 Dec. 31, 2017 Accounts Receivable $22,250 Inventory 1,800 Accounts Payable 22,250 Accured Liabilities 1,150 Prepare the operating activities section of the statement of cash flows (indirect method) for the year 2018. Use the minus sign to indicate cash outflows, a decrease in cash or cash payments. Eiffel Company Statement of Cash Flows (Indirect Method) For the Year Ended December 31, 2018 Operating…
Use the following excerpts from Victrolia Company’s financial information. 2018 Income Statment Balance Sheets Sales $475,000 Cost of Goods Sold (221,500) Operating Expenses, other thanDepreciation Expense (60,600) Depreciation Expense (21,000) Gain on Sale of Plant Assets 23,500 Net Income $195,400 Dec. 31,2018 Cash $347,450 Accounts Receivable 39,750 Inventory 33,000 Accounts Payable 17,550 Accured Liabilities 3,500 Dec. 31, 2017 Cash $133,500 Accounts Receivable 36,500 Inventory 35,000 Accounts Payable 19,550 Accured Liabilities 2,200 Additional Information: Plant assets were sold for $45,000; book value $16,500 Dividends of $22,000 were declared and paid Prepare a statement of cash flows (direct method) for the year 2018. Use the minus sign to indicate cash out flows, a decrease in cash or cash payments. Victrolia CompanyStatement of…
Use the following excerpts from Victrolia Company’s financial information. 2018 Income Statment Balance Sheets Sales $475,000 Cost of Goods Sold (221,500) Operating Expenses, other thanDepreciation Expense (60,600) Depreciation Expense (21,000) Gain on Sale of Plant Assets 23,500 Net Income $195,400 Dec. 31,2018 Cash $347,450 Accounts Receivable 39,750 Inventory 33,000 Accounts Payable 17,550 Accured Liabilities 3,500 Dec. 31, 2017 Cash $133,500 Accounts Receivable 36,500 Inventory 35,000 Accounts Payable 19,550 Accured Liabilities 2,200 Additional Information: Plant assets were sold for $45,000; book value $16,500 Dividends of $22,000 were declared and paid Cash Flow from Financing Activities: $Dividends Paid I just need the answer on dividends answer box?
Need help with this question solution general accounting
Suppose in its income statement for the year ended June 30, 2025, The Clorox Company reported the following condensed data (dollars in millions). Salaries and wages expenses Depreciation expense Sales revenue Interest expense Advertising expense Sales returns and allowances Assume a tax rate of 34%. (a) $ 300 60 3,420 120 300 161 Research and development expense Income tax expense Loss on disposal of plant assets Cost of goods sold Rent expense Utilities expense The Clorox Company Income Statement (amounts in millions) $60 $ 200 30 1,710 Prepare a multiple-step income statement. (Round answers to 0 decimal places, eg. 15,222) 60 30 $
provide answer General accounting question
Practice Problem Below are the balance sheet and income statement for Major, Inc. December 31 2007 2006Cash $ 29,700 $ 10,200 Accounts receivable (net) 53,400 20,300 Inventory 39,000 42,000 Long-term investments 0 15,000 Plant Assets, net of depreciation 180,900 125,000 Total Assets $303,000 $212,500Accounts payable $ 16,000 $ 26,500 Accrued liabilities 28,000 17,000 Long-term notes payable 40,000 50,000 Common stock 150,000 90,000 Retained earnings 69,000 29,000 Total Liabilities and Owner’s Equity $303,000 $212,500Year ended December 31, 2007Sales Revenue $340,000 Cost of Goods Sold (200,000) Operating Expenses (58,400) Depreciation Expense (10,600) Gain on sale of investments 4,000Net Income $ 75,000Additional information: A) In 2007, Major, Inc didn’t sell plant asset and didn’t purchase additional investment.B) In 2007, no shares were repurchased and no new debt was issued. 1. Prepare the Statement of Cash Flows…
question in the pic
Net income general
Use the information below to answer the questions below. Luther Corporation Consolidated Income Statement Year ended December 31 (in $ millions) 2015 2014 Total sales 610.1 578.3 Cost of sales (500.2) (481.9) Gross profit 109.9 96.4 Selling, general, and administrative expenses (40.5) (39.0) Research and development (24.6) (22.8) Depreciation and amortization (3.6) (3.3) Operating income 41.2 31.3 Other income --- --- Earnings before interest and taxes (EBIT) 41.2 31.3 Interest income (expense) (25.1) (15.8) Pretax income 16.1 15.5 Taxes (5.5) (5.3) Net income 10.6 10.2 Price per share $16 $15 Shares outstanding (millions) 10.2 8.0 Stock options outstanding (millions) 0.3 0.2 Shareholders' Equity 126.6 63.6 Total Liabilities…

SEE MORE QUESTIONS

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS