**OST Supply Corporation Proforma Financial Statements**The financial statements are presented in thousands (000s).**Income Statements**- **2020 and 2021:** - Sales - Cost of goods sold - Gross profit - Operating Expenses - Advertising - Depreciation - EBIT (Earnings Before Interest and Taxes) - Interest - EBT (Earnings Before Taxes) - Taxes - EAT (Earnings After Taxes) - Dividends**Balance Sheets**- **2020 and 2021:** - **Current Assets:** - Cash - Accounts receivable - Inventory - Total current assets - **Fixed Assets:** - Land - Buildings and equipment - Less: accumulated depreciation - Total fixed assets - Total assets**Liabilities and Equity**- **2020 and 2021:** - Accounts payable - Bank notes - Total current liabilities - Long-term debt - Common stock - Retained earnings - Total liabilities & equity**Additional Financial Need (AFN):** A calculation space is provided for determining any additional financing required.This table structure helps in assessing the company's projected financial performance for the years 2020 and 2021. ## Forecast of Financial Areas for OST Supply Corporation### Table: OST Supply Corp. - Forecasts for 2020 and 2021| | 2020 | 2021 ||-----------------------|--------------|-----------------|| **Sales** | | 125,425,000 || **Net Profit Margin** | | 3.15% || **Dividends** | | 0 || **Total Assets** | 71,671,429 | || **Long Term Debt** | 35,835,714 | || **Common Stock** | 18,459,000 | |- **Last year's (2020) Retained Earnings**: 11,250,000### Instructionsa. **Complete the proforma financial statements** using the data provided by filling in the unshaded blanks. The dark grey blanks do not need to be filled.b. **Based on your proforma financial statements**, determine the firm's estimated Additional Funds Needed for 2021.### ExplanationThis table contains the projected financial data for OST Supply Corporation for the year 2021. The sales figure is projected at $125,425,000 with a net profit margin of 3.15%. No dividends are expected to be declared in 2021. The total assets, long-term debt, and common stock for the year need to be calculated or provided based on the current and previous data. Retained earnings from 2020 stand at $11,250,000. The task involves completing the proforma financial statements to identify additional funding requirements for 2021.

Financial statements are in the form of written records that are used in conveying the business…

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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

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Comparative balance sheets for Softech Canvas Goods for 2021 and 2020 are shown below. Softech pays no dividends and instead reinvests all earnings for future growth. Comparative Balance Sheets ( $ in thousands) December 31 2021 2020 Assets: Cash $ 89 $ 66 Accounts receivable 165 185 Short-term investments 76 66 330 218 Inventory Property, plant, and equipment (net) 860 745 $1,520 $1,280 Liabilities and Shareholders' Equity: Current liabilities $ 370 $ 275 Bonds payable Paid-in capital Retained earnings 225 225 595 595 330 185 $1,520 $1,280 Required: 1. Determine the return on shareholders' equity for 2021. (Round your answer to 2 decimal places.) Return on shareholders' equity
The management of Kosoko traders wants to establish theamount of financial needs for the next two years.Thebalance sheet of the firm as at 31stDecember 2016 is asfollows:Shs.‘000’Net fixed assets 124,800Stock 38,400Debtors 28,800Cash 7,200TotalAssets 199,200Financedby:Ordinary share capital 84,000Retained earnings 35,20012%long-term debt 20,000Trade creditors 36,000Accrued expenses 24,000TOTAL 199,200For the year ended 31st December,2016sales amounted to sh.240,000,000.The firm projects that the sales will increase by15%in 2017and 20% in 2018.After tax profit on sales has been 11% but the management ispessimistic about future operating costs and use anafter-tax profit on sales rate of 8%per annum by 2018.The firmintends to maintain it's dividend pay out ratio 80%.Assets areexpected to vary with sales,while trade creditors and accruedexpenses form the spontaneous sources of financing.Any external financing will be effected through the use of commercial paper.calculate amount of external…
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None

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