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. elated to financial projections for next year is as follows: sales are $6,006,000. ods sold last year includes $998,000 in fixed costs. expense last year includes $246,000 in fixed costs. pense will remain unchanged. vill pay cash dividends amounting to 35% of net profits after taxes. inventories will double. e securities, notes payable, long-term debt, and common stock will remain unchanged. receivable, accounts payable, and other current liabilities will change in direct response to the change in sales. nputer system costing $364,000 will be purchased during the year. Total depreciation expense for the year will be $116,000. ate will remain at 40%. pro forma income statement for next year, using the fixed cost data given to improve the accuracy of the percent-of-sales met Data table (Click on the icon here O in order to copy the contents of the data table below into a sprear Provincial Imports, Inc. Income Statement for the Year Just Ended Sales revenue Less: Cost of goods sold Gross profits Less: Operating expenses Operating profits Less: Interest expense $5,006,000 2,741,000 $2,265,000 . .. ... 855,000 $1,410,000 pro forma income statement for next year, using the fixed cost data given to improve the accuracy of the percent-of-sales met 201.000 Net profits before taxes Less: Taxes (rate = 40%) $1,209.000 pro forma income statement for next year below: (Round to the nearest dollar.) 483,600 Net profits after taxes $725,400 Pro Forma Income Statement Less: Cash dividends 253,890
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. elated to financial projections for next year is as follows: sales are $6,006,000. ods sold last year includes $998,000 in fixed costs. expense last year includes $246,000 in fixed costs. pense will remain unchanged. vill pay cash dividends amounting to 35% of net profits after taxes. inventories will double. e securities, notes payable, long-term debt, and common stock will remain unchanged. receivable, accounts payable, and other current liabilities will change in direct response to the change in sales. nputer system costing $364,000 will be purchased during the year. Total depreciation expense for the year will be $116,000. ate will remain at 40%. pro forma income statement for next year, using the fixed cost data given to improve the accuracy of the percent-of-sales met Data table (Click on the icon here O in order to copy the contents of the data table below into a sprear Provincial Imports, Inc. Income Statement for the Year Just Ended Sales revenue Less: Cost of goods sold Gross profits Less: Operating expenses Operating profits Less: Interest expense $5,006,000 2,741,000 $2,265,000 . .. ... 855,000 $1,410,000 pro forma income statement for next year, using the fixed cost data given to improve the accuracy of the percent-of-sales met 201.000 Net profits before taxes Less: Taxes (rate = 40%) $1,209.000 pro forma income statement for next year below: (Round to the nearest dollar.) 483,600 Net profits after taxes $725,400 Pro Forma Income Statement Less: Cash dividends 253,890
Managerial Accounting
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
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