The financial statements for the year ended June 30, 2011, are given below for Morgan Construction Company. The firm’s sales are projected to grow at a rate of 26percent next year, and all financial statement accounts will vary directly with sales. Morgan Construction Company Balance Sheet for Year Ended June 30, 2011 Assets: Liabilities and Stockholders’ Equity: Cash $3,349,239 Accounts payable $9,041,679 Accounts receivables 5,830,754 Notes payable 4,857,496 Inventories 22,267,674 Total current assets $31,447,667 Total current liabilities $13,899,175 Net fixed assets 43,362,482 Long-term debt 29,731,406 Other assets 1,748,906 Common stock 19,987,500 Retained earnings 12,940,974 Total assets $76,559,055 Total liabilities & equity $76,559,055 Morgan Construction Company Income Statement Year Ended June 30, 2011 Revenues $193,212,500 Costs 145,265,625 EBITDA $47,946,875 Depreciation 23,318,750 EBIT $24,628,125 Interest 11,935,869 EBT $12,692,256 Taxes (35%) 4,442,290 Net income $8,249,966 Based on that projection, develop a pro forma balance sheet and an income statement for the 2012 fiscal year. (Round answers to the nearest whole dollar, e.g. 5,275.)

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The financial statements for the year ended June 30, 2011, are given below for Morgan Construction Company. The firm’s sales are projected to grow at a rate of 26percent next year, and all financial statement accounts will vary directly with sales.

Morgan Construction Company Balance Sheet for Year Ended June 30, 2011
Assets:		Liabilities and Stockholders’ Equity:
Cash	$3,349,239	Accounts payable	$9,041,679
Accounts receivables	5,830,754	Notes payable	4,857,496
Inventories	22,267,674
Total current assets	$31,447,667	Total current liabilities	$13,899,175

Net fixed assets	43,362,482	Long-term debt	29,731,406
Other assets	1,748,906	Common stock	19,987,500
		Retained earnings	12,940,974
Total assets	$76,559,055	Total liabilities & equity	$76,559,055

Morgan Construction Company Income Statement Year Ended June 30, 2011

Revenues	$193,212,500
Costs	145,265,625
EBITDA	$47,946,875
Depreciation	23,318,750
EBIT	$24,628,125
Interest	11,935,869
EBT	$12,692,256
Taxes (35%)	4,442,290
Net income	$8,249,966

Based on that projection, develop a pro forma balance sheet and an income statement for the 2012 fiscal year. (Round answers to the nearest whole dollar, e.g. 5,275.)

Total assets
Total liabilities & equity
Morgan Construction Company
Pro Forma Income Statement
Year Ended June 30, 2012
Revenues
Costs
EBITDA
Depreciation
ЕBIT
Interest
EBT
Taxes (35%)
Net income

Morgan Construction Company
Pro Forma Balance Sheet for Year Ended June 30, 2012
Assets:
Liabilities and Stockholders' Equity:
Cash
Accounts payable
Accounts receivables
Notes payable
Inventories
Total current assets
Total current liabilities
Net fixed assets
Long-term debt
Other assets
Common stock
Retained earnings

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