Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. financial projections for 2013 description: prepar

Financial Projections for 2013 Description: Prepare a pro forma income statement table for the year...

90.2K

Verified Solution

Question

Accounting

Financial Projections for 2013 Description: Prepare a pro forma income statement table for the year ending December 31, 2013, using the fixed cost data provided to improve the accuracy of the percentage of sales method. Prepare a pro forma balance sheet table as of December 31, 2013, using the information provided and the critical method. Include a retained earnings adjustment account. Analyze these financial statements and comment on the resulting required external financing. Data: Projected sales are $6,000,000. Costs of goods sold in 2012 include $1,000,000 in fixed costs. Operating expenses in 2012 include $250,000 in fixed costs. Interest expenses remain unchanged. The company will pay cash dividends in an amount equal to 40% of net profits after taxes. Inventories and cash will double. Marketable securities, notes payable, long-term debt and common stock will remain unchanged. Accounts receivable, accounts payable, and other current liabilities will change in direct response to the change in sales. During the year a new computer system will be purchased at a cost of $356,000. Total depreciation expenses for the year will be $110,000. The tax rate will remain at 40%.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

A company manufactures x units of Product A and y units of Product B, on two...

Basic Math
Q

Eucalyptus trees are a dominant species in some forests. These trees can be effected by a...

Biology
Q

High-resolution peripheral quantitative computed tomography How does this technique work and what does it measure? What equipment...

Medical Sciences
Q

In humans, the huntingtin gene is essential for nerve cells to function effectively. People with Huntington’s...

Biology
Q

Some Interneurons excite Somatic Motorneurons, while other Interneurons inhibit Somatic Motorneurons. True False

Medical Sciences
Q

our universe was made by a powerful Intelligence who exists outside our universe, and in whose...

Psychology
Q

verity the identity 1 cos2x sin 2x cot x Use the appropriate double angle formulas...

Algebra
Q

6.Which of the following should be considered in decision making? a) Specific fixed avoidable cost...

Accounting
Q

Prepare necessary ledger account for this question .Mr. Shailesh furnishes you the following details:-

Accounting
Q

Crane Company produces flash drives for computers, which it sells for $22 each. Each flash...

Accounting
Q

Coronado Inc. has negotiated the purchase of a new piece of automatic equipment at a...

Accounting
Q

Profits have been decreasing for several years at Fly with Us (FWU) Airlines in an...

Accounting