101112131415We need to forecast 2019 using the modified percentage of sales method to prepare for amanagement meeting. We expect to grow 10%, in all areas except for:Fixed assets is expected to grow $88,000 due to an expansion program already underway.The firm pays 9% interst on all of its debt. Assume the tax rate is a flat 25%. There are noplans for dividends or the sale any additional stock next year. Make a forecast of theincome statement and balance sheet.16 Revenue17 CGS18 GM19 Expenses20 EBIT21 Interest22 EBT23 Tax24 Net Income252627 Proforma Balance Sheet 20x1 ($000)28 Assets29 Current Assets30 Fixed Assets3132 Total Assets3334 Liabilities and Equity35 Current Liab3637 Debt38 Equity39 Total Liab & Equity4041Example CompanyCurrent & Projected Income Statements($000)201864228935324011333802555201819855275087***325D33875020192019706318

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We need to forecast 2019 using the modified percentage of sales method to prepare for a management meeting. We expect to grow 10%, in all areas except for: Fixed assets is expected to grow $88,000 due to an expansion program already underway. The firm pays 9% interst on all of its debt. Assume the tax rate is a flat 25%. There are no plans for dividends or the sale of any additional stock next year. Make a forecast of the income statement and balance sheet. Revenue CGS GM Expenses EBIT Interest EST Tax Net Income Proforma Balance Sheet 2011 (5000) Assets Current Assets Fixed Assets Total Assets Liabilities and Equity Current Liab Debt Equity Total Liab & Equity Example Company Current & Projected Income Statements (5000) 2018 642 289 353 240 113 33 80 25 55 2018 198 552 750 87 325 338 750 2019 2019 706 318

We need to forecast 2019 using the modified percentage of sales method to prepare for a management meeting. We expect to grow 10%, in all areas except for: Fixed assets is expected to grow $88,000 due to an expansion program already underway. The firm pays 9% interst on all of its debt. Assume the tax rate is a flat 25%. There are no plans for dividends or the sale of any additional stock next year. Make a forecast of the income statement and balance sheet. Revenue CGS GM Expenses EBIT Interest EST Tax Net Income Proforma Balance Sheet 2011 (5000) Assets Current Assets Fixed Assets Total Assets Liabilities and Equity Current Liab Debt Equity Total Liab & Equity Example Company Current & Projected Income Statements (5000) 2018 642 289 353 240 113 33 80 25 55 2018 198 552 750 87 325 338 750 2019 2019 706 318

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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