Next year, UMPI Corporation is increasing its fixed assets, Plant, Property, and Equipment, by
$ The inventories will increase by accounts receivable will increase by
and marketable securities will be reduced by to help finance the expansion. If all other
asset accounts remain the same and longterm debt will be used to finance the remaining
costs of the expansion no change in common stock or retained earnings prepare a pro
forma balance sheet for How much additional debt will be estimated using this pro
forma balance sheet?
UMPI Company
Balance Sheet
December
Current Assets
Current Liabilities
Accounts Payable $$
Other Current Liabilities $
Total Current Liabilities
Longterm Liabilities
$
LongTerm Debt $
Other Longterm Liab. $
Total LongTerm Liabilities
TOTAL LIABILITIES
Owners' Equity
TOTAL OWNERS' EQUITY
TOTAL LIABILITIES & OWNER'S EQUITY
