help please Integrative-Pro forma statements Provincial Imports, Inc., has assembled last year's financial statements (income staDalabieInformation related to financial projections for next year is as follows:(1) Projected sales are $6,006,000.(2) Cost of goods sold last year includes $998,000 in fixed costs.(3) Operating expense last year includes $246,000 in fixed costs.(4) Interest expense will remain unchanged.(5) The firm will pay cash dividends amounting to 35% of net profits after taxes.(6) Cash and inventories will double.(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 sale(9) A new computer system costing $364,000 will be purchased during the year. Total depreciation expense for the year w(10) The tax rate will remain at 40%.a. Prepare a pro forma income statement for next year, using the fixed cost data given to improve the accuracy of the perdOperating profitsLess: Interest expense$1,410,000201,000Net profits before taxesLess: Taxes (rate = 40%)$1,209,000483,600Net profits after taxes$725,400Less: Cash dividends253,890To retained earnings$471,510(Click on the icon herein order to copy the contents of the data table below into a spreadsheet.)Provincial Imports, Inc. Balance Sheetfor the Year Just EndedAssetsLiabilities and Stockholders' EquityLess: Cost of goods SOidAccounts payableTaxes payableNotes payableCash$190,000$700,000Gross profitsMarketable securities230,00095,000Less: Operating expensesAccounts receivable635,000205,000Inventories508,000Other current liabilities4,800Operating profitsTotal current assets$1,563,000Total current liabilities$1,004,800Less: Interest expenseNet fixed assets1,408,000Long-term debt512,200Net profits before taxesCommon stock77,000Retained earnings1,377,000Less: Taxes (rate = 40%)%3DTotal assets$2,971,000Total liabilities and equity$2,971,000Net profits after taxesLess: Cash dividends (35%)To Retained earnings%24%24%24%24 ntegrative-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.nformation related to financial projections for next year is as follows:1) Projected sales are $6,006,000.2) Cost of goods sold last year includes $998,000 in fixed costs.3) Operating expense last year includes $246,000 in fixed costs.4) Interest expense will remain unchanged.5) The firm will pay cash dividends amounting to 35% of net profits after taxes.6) Cash and inventories will double.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 $364,000 will be purchased during the year. Total depreciation expense for the year will be $116,000.10) The tax rate will remain at 40%.1. Prepare a pro forma income statement for next year, using the fixed cost data given to improve the accuracy of the percent-of-sales methData table(Click on the icon herein order to copy the contents of the data table below into a spreadsheetProvincial Imports, Inc. Income Statementfor the Year Just Ended$5,006,0002,741,000Sales revenueLess: Cost of goods soldGross profitsLess: Operating expenses$2,265,000855,000...$1,410,000Operating profitsLess: Interest expense1. Prepare a pro forma income statement for next year, using the fixed cost data given to improve the accuracy of the percent-of-sales meth201,000Net profits before taxes$1,209,000Complete the pro forma income statement for next year below: (Round to the nearest dollar.)Less: Taxes (rate = 40%)483,600Net profits after taxes$725,400Pro Forma Income StatementLess: Cash dividends253,890Provincial Imports, Inc.To retained earnings$471,510for Next Year(Click on the icon here Din order to copy the contents of the data table below into a spreadsheet(percent-of-sales method)Provincial Imports, Inc. Balance SheetSales$for the Year Just EndedLess: Cost of goods soldAssetsLiabilities and Stockholders' EquityCash$190,000Accounts payable$700,Gross profits

Financial statement: Financial statements are organized summaries of detailed information about the…

formation related to financial projections for next year is as follows: ) Projected sales are $6,006,000. ) Cost of goods sold last year includes $998,000 in fixed costs. -) Operating expense last year includes $246,000 in fixed costs. ) Interest expense will remain unchanged. ) The firm will pay cash dividends amounting to 35% of net profits after taxes. ) Cash and inventories 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 sale A new computer system costing $364,000 will be purchased during the year. Total depreciation expense for the year w 0) The tax rate will remain at 40%. Prepare a pro forma income statement for next year, using the fixed cost data given to improve the accuracy of the perd $1,410,000 201,000 Uperating protits Less: Interest expense Net profits before taxes Less: Taxes (rate = 40%) $1,209,000 483,600 Net profits after taxes $725,400 Less: Cash dividends 253,890 S471.510 To retained earnings (Click on the icon here e in order to copy the contents of the data table below into a spreadsheet.) ... Provincial Imports, Inc. Balance Sheet for the Year Just Ended Liabilities and Stockholders' Equity Assets Less: COSI oI goous soiu Cash Marketable securities $190,000 Accounts payable Taxes payable Notes payable $700,000 Gross profits 230,000 635,000 95,000 205,000 Less: Operating expenses Accounts receivable 508,000 $1,563,000 Total current liabilities 1,408,000 Inventories Other current liabilities 4,800 Operating profits $ Total current assets $1,004,800 Less: Interest expense Net fixed assets Long-term debt 512,200 Common stock Retained earnings Net profits before taxes $ 77,000 1,377,000

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter16: Financial Statement Analysis

Section: Chapter Questions

Problem 2PB