Pro forma balance sheet. Next year, California Cement Company will increase its plant, property, and equipment by $6,065,000 with a plant expansion. The inventories will grow by 82%, accounts receivable will grow by 69%, and marketable securities will be reduced by 65% to help finance the expansion. Assume all other asset accounts will remain the same and the company will use long-term debt to finance the remaining expansion costs (no change in common stock or retainedearnings). Using this information and the balance sheet , for California Cement Company for 2013, prepare a pro forma balance sheet for 2014. How much additional debt will the company need using this pro forma balance sheet? Complete the pro-forma balance sheet for 2014 below: (Round to the nearest dollar.) California Cement Company Balance Sheet for the Year Ending December 31, 2013 ASSETS LIABILITIES Current assets Current liabilities Cash $ 1,471,000 Accounts payable $ 6,146,000 Marketable securities $ 1,169,000 Other current liabilities $ 1,174,000 Accounts receivable $ 3,740,000 Total current liabilities $ 7,320,000 Inventories $ 2,634,000 Long-term liabilities Total current assets $ 9,014,000 Long-term debt $ 2,417,000 Long-term assets Other long-term liabilities $ 1,551,000 Plant, property, and equipment $ 6,788,000 Total long-term liabilities $ 3,968,000 Goodwill $ 4,054,000 Total liabilities $ 11,288,000 Intangible assets $ 1,509,000 OWNERS' EQUITY Total long-term assets $ 12,351,000 Common stock $ 2,422,000 Retained earnings $ 7,655,000 Total owners' equity $ 10,077,000 TOTAL LIABILITIES AND TOTAL ASSETS $ 21,365,000 OWNERS' EQUITY $ 21,365,000 California Cement Company Pro Forma Balance Sheet for the Year Ending December 31, 2014 ASSETS LIABILITIES Current assets Current liabilities Cash $ ? Accounts payable $ ? Marketable securities $ ? Other current liabilities $ ? Accounts receivable $ ? Total current liabilities $ ? Inventories $ ? Long-term liabilities Total current assets $ ? Long-term debt $ ? Long-term assets Other long-term liabilities $ ? Plant, property, and equipment $ ? Total long-term liabilities $ ? Goodwill $ ? Total liabilities $ ? Intangible assets $ ? OWNERS' EQUITY Total long-term assets $ ? Common stock $ ? Retained earnings $ ? Total owners' equity $ ? TOTAL LIABILITIES AND TOTAL ASSETS $ ? OWNERS' EQUITY $ ? How much additional debt will be estimated using this pro forma balance sheet? (Round to the nearest dollar.)
Pro forma
$6,065,000
with a plant expansion. The inventories will grow by
82%,
69%,
and marketable securities will be reduced by
65%
to help finance the expansion. Assume all other asset accounts will remain the same and the company will use long-term debt to finance the remaining expansion costs (no change in common stock or retainedearnings). Using this information and the balance sheet
, for California Cement Company for 2013, prepare a pro forma balance sheet for 2014. How much additional debt will the company need using this pro forma balance sheet?
Complete the pro-forma balance sheet for 2014 below: (Round to the nearest dollar.)
|
California Cement Company |
|||||
|
Balance Sheet for the Year Ending December 31, 2013 |
|||||
|
ASSETS |
LIABILITIES |
||||
|
Current assets |
Current liabilities |
||||
|
Cash |
$ |
1,471,000 |
Accounts payable |
$ |
6,146,000 |
|
Marketable securities |
$ |
1,169,000 |
Other current liabilities |
$ |
1,174,000 |
|
Accounts receivable |
$ |
3,740,000 |
Total current liabilities |
$ |
7,320,000 |
|
Inventories |
$ |
2,634,000 |
Long-term liabilities |
||
|
Total current assets |
$ |
9,014,000 |
Long-term debt |
$ |
2,417,000 |
|
Long-term assets |
Other long-term liabilities |
$ |
1,551,000 |
||
|
Plant, property, and equipment |
$ |
6,788,000 |
Total long-term liabilities |
$ |
3,968,000 |
|
|
$ |
4,054,000 |
Total liabilities |
$ |
11,288,000 |
|
Intangible assets |
$ |
1,509,000 |
OWNERS' EQUITY |
||
|
Total long-term assets |
$ |
12,351,000 |
Common stock |
$ |
2,422,000 |
|
|
$ |
7,655,000 |
|||
|
Total owners' equity |
$ |
10,077,000 |
|||
|
TOTAL LIABILITIES AND |
|||||
|
TOTAL ASSETS |
$ |
21,365,000 |
OWNERS' EQUITY |
$ |
21,365,000 |
California Cement Company
Pro Forma Balance Sheet for the Year Ending December 31, 2014
ASSETS
LIABILITIES
Current assets
Current liabilities
Cash
$ ?
Accounts payable
$ ?
Marketable securities
$ ?
Other current liabilities
$ ?
Accounts receivable
$ ?
Total current liabilities
$ ?
Inventories
$ ?
Long-term liabilities
Total current assets
$ ?
Long-term debt
$ ?
Long-term assets
Other long-term liabilities
$ ?
Plant, property, and equipment
$ ?
Total long-term liabilities
$ ?
Goodwill
$ ?
Total liabilities
$ ?
Intangible assets
$ ?
OWNERS' EQUITY
Total long-term assets
$ ?
Common stock
$ ?
Retained earnings
$ ?
Total owners' equity
$ ?
TOTAL LIABILITIES AND
TOTAL ASSETS
$ ?
OWNERS' EQUITY
$ ?
How much additional debt will be estimated using this pro forma balance sheet? (Round to the nearest dollar.)
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