Excel spreadsheet
\nCreate an Excel spreadsheet to organize your answers to the following problem, and submit your Excel file as an attachment by clicking on the appropriate button on this page.<\/p>\n
A company published the following information in its financial statements for its 2015 annual report:
\nSales<\/p>\n
$76,000
\n– Cost of goods sold<\/p>\n
49,000
\nGross profit<\/p>\n
27,000
\n– Cash Operating expenses
\n$9,000<\/p>\n
– Depreciation
\n2,000<\/p>\n
Total Operating Expenses<\/p>\n
11,000
\nEBIT<\/p>\n
16,000
\n– Interest expense<\/p>\n
840
\nEBT<\/p>\n
15,160
\n– Tax expense<\/p>\n
5,306
\nNet Income<\/p>\n
$9,854<\/p>\n
– Dividends<\/p>\n
3,942
\nAddition to retained earnings<\/p>\n
$5,912<\/p>\n
Cash
\n$9,000
\nMarketable securities
\n2,000
\nAccounts receivable
\n11,000
\nInventories
\n7,000
\nFixed Assets, net
\n24,000
\nTotal Assets
\n$53,000<\/p>\n
Accounts payable
\n$8,000
\nAccrued payables
\n3,000
\nBonds payable
\n12,000
\nCommon stock
\n16,000
\nRetained earnings
\n14,000
\nTotal Liabilities and Equity
\n$53,000<\/p>\n
Sales in 2016 are estimated to be $90,000. Cost of goods sold and $5,000 of the cash operating expenses are considered variable costs.
\nDepreciation and the remainder of cash operating expenses are considered to be fixed costs.
\nCash, accounts receivable, inventories, accounts payable, and accrued payables are considered to be spontaneous items.
\nMarketable securities, net fixed assets, bonds payable, and common stock are discretionary.
\n$5,000 of bonds payable at the end of 2015 are considered “current liabilities,” and will be repaid in early 2016.
\nThe company purchased fixed assets of $3,600 in 2016, but depreciation for 2016 will remain the same dollar amount as it was for 2015.
\nThe firm will maintain its 2015 dividend payout ratio in 2016.
\nThe income tax rate for 2016 is expected to be the same as it was in 2015.<\/p>\n
Required:
\nPrepare the pro-forma 2016 income statement, balance sheet, and statement of cash flows<\/p>\n","protected":false},"excerpt":{"rendered":"
Excel spreadsheet Create an Excel spreadsheet to organize your answers to the following problem, and submit your Excel file as an attachment by clicking on the appropriate button on this page. A company published the following information in its financial Read More …<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-19064","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/19064","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/comments?post=19064"}],"version-history":[{"count":0,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/19064\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/media?parent=19064"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/categories?post=19064"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/tags?post=19064"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}