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Home / Questions / -X Integrative-Pro forma statements Provincial Imports, Inc., has assembled last year's fi...

-X Integrative-Pro forma statements Provincial Imports, Inc., has assembled last year's financial statements (income statement and balance sheet and financial projections for use in preparing

-X Integrative-Pro forma statements Provincial Imports, Inc., has assembled last year's financial statements (income statement and balance sheet and financial projections for use in preparing financial plans for the coming year. Information related to financial projections for next year is as follows: (1) Projected sales are $8,004,000 2) Cost of goods sold last year includes $1.000.000 in fixed costs (3) Operating expense last year includes $255,000 in foxed costs Interest expense will remain unchanged. 5) The firm will pay cash dividends amounting to 45% of net profits after taxes. 8) Cash and inventories will double 0 Data Table (7) Marketable securities, notes payable, long-term debt, and common stock will remain unchanged. (8) Accounts receivable accounts payable, and other current liabilities will change in direct response to the change in sales 9) A new computer system costing S358,000 will be purchased during the year. Total depreciation expense for the year will be $118.000 (10) The tax rate will remain at 40% change i (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) a. Prepare a pro forma income statement for next year, using the fixed cost data given to improve the accuracy of the percent-of-sales method. e for they b. Prepare a pro forma balance sheet for next year, using the information given and the judgmental approach. Include a reconciliation of the retained earnings account Provincial Imports, Inc. Income Statement uracy of the for the Year Just Ended a. Prepare a pro forma income statement for next year, using the fixed cost data given to improve the accuracy of the percent-of-sales method. sch. Includ Sales revenue $4.094.000 Complete the pro forma income statement for next year below: (Round to the nearest dollar.) uracy of the Less: Cost of goods sold 2.752.000 Gross profits $2,242.000 Less: Operating expenses 855,000 Pro Forma Income Statement Operating profits $1,387,000 Provincial Imports, Inc. Less: Interest expense 205.000 Net profits before taxes $1,182.000 for Next Year Less: Taxes (rate = 40%) 472.800 (percent-of-sales method) Net profits after taxes $709,200 Less Cash dividends 319,140 Sales $ To retained earnings $390,000 Less: Cost of goods sold (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Gross profits S Provincial Imports, Inc. Balance Sheet Less: Operating expenses for the Year Just Ended Assets Operating profits Liabilities and Stockholders' Equity Cash $190,000 Accounts payable $898,000 Less: Interest expense Marketable securities 233,000 Taxes payable 95,000 Accounts receivable 815,000 Notes payable $ 204,000 Net profits before taxes Inventories 497,000 Other current liabilities 5.300 Less: Taxes (rate = 40%) Total current assets $1,535,000 Total current liabilities $1,000,300 Net fixed assets 1,409,000 Long-term debt 500,700 Net profits after taxes Common stock 77,000 Retained earnings 1,368,000 Less: Cash dividends (45%) Total assets $2,944,000 Total liabilities and equity $2.044.000 To Retained earnings $ Print Done

Apr 05 2021 View more View Less

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