The mast recent thandal staiements for Crosby, Inc, tallow Interest expense wll remoin constant the ter capacty and the debl-equty ralo b held constent 770,000 626,000 32,500 Gasts Eamings bclore Intarest and toxeS Interest pod $111,5D0 16,800 1% Taxsble Incom Taes (2296 94,700 20,834 Net Incom 두73,866 dends ddon to retained eamings $32,940 SR6 Balance Sheet as of December 31, 2017 Equlty Current asses Current ilabilities 64,200 Cash Accounts recavabie s 25,940 Accounts payable 35,430 Notes payable 19,700 3 83,900 $118,000 Inventory $133,420 Long-term debt Owners' equity Fbed assets Common stock and pald-in surplus $113,000 45,520 5158,520 5360,420 Total ilablities and owners equity 360,420 Net plant and equipment 227,000 Retained eamings Total Total asses Complete the pro forme income statements below. (Do not round Intermediate calculations. Round your ancwerc to the nearect whole dollar amount.) Pro Forma Inoome Statement 1096 Balec Growth | 1696 Balecarowth | 40% Balec arowth 07,800 Bales Costs Other expenses 847.000 E88,E0O 719,800 876.40 28.22 E Interest psd Taable Income 29 300 Net Income vdends hdd to RE 0%

Question
The
mast recent thandal staiements for Crosby, Inc, tallow Interest expense wll remoin constant the ter
capacty and the debl-equty ralo b held constent
770,000
626,000
32,500
Gasts
Eamings bclore Intarest and toxeS
Interest pod
$111,5D0
16,800
1%
Taxsble Incom
Taes (2296
94,700
20,834
Net Incom
두73,866
dends
ddon to retained eamings
$32,940
SR6
Balance Sheet as of December 31, 2017
Equlty
Current asses
Current ilabilities
64,200
Cash
Accounts recavabie
s 25,940 Accounts payable
35,430 Notes payable
19,700
3 83,900
$118,000
Inventory
$133,420
Long-term debt
Owners' equity
Fbed assets
Common stock and pald-in surplus
$113,000
45,520
5158,520
5360,420 Total ilablities and owners equity 360,420
Net plant and equipment 227,000 Retained eamings
Total
Total asses
Complete the pro forme income statements below. (Do not round Intermediate calculations. Round your
ancwerc to the nearect whole dollar amount.)
Pro Forma Inoome Statement
1096 Balec Growth | 1696 Balecarowth | 40% Balec arowth
07,800
Bales
Costs
Other expenses
847.000
E88,E0O
719,800
876.40
28.22 E
Interest psd
Taable Income
29 300
Net Income
vdends
hdd to RE
0%
Expand
Transcribed Image Text

The mast recent thandal staiements for Crosby, Inc, tallow Interest expense wll remoin constant the ter capacty and the debl-equty ralo b held constent 770,000 626,000 32,500 Gasts Eamings bclore Intarest and toxeS Interest pod $111,5D0 16,800 1% Taxsble Incom Taes (2296 94,700 20,834 Net Incom 두73,866 dends ddon to retained eamings $32,940 SR6 Balance Sheet as of December 31, 2017 Equlty Current asses Current ilabilities 64,200 Cash Accounts recavabie s 25,940 Accounts payable 35,430 Notes payable 19,700 3 83,900 $118,000 Inventory $133,420 Long-term debt Owners' equity Fbed assets Common stock and pald-in surplus $113,000 45,520 5158,520 5360,420 Total ilablities and owners equity 360,420 Net plant and equipment 227,000 Retained eamings Total Total asses Complete the pro forme income statements below. (Do not round Intermediate calculations. Round your ancwerc to the nearect whole dollar amount.) Pro Forma Inoome Statement 1096 Balec Growth | 1696 Balecarowth | 40% Balec arowth 07,800 Bales Costs Other expenses 847.000 E88,E0O 719,800 876.40 28.22 E Interest psd Taable Income 29 300 Net Income vdends hdd to RE 0%

Expert Answer

Want to see the step-by-step answer?

Check out a sample Q&A here.

Want to see this answer and more?

Experts are waiting 24/7 to provide step-by-step solutions in as fast as 30 minutes!*

*Response times may vary by subject and question complexity. Median response time is 34 minutes for paid subscribers and may be longer for promotional offers.
Tagged in
Business
Finance

Related Finance Q&A

Find answers to questions asked by students like you.

Q: You strongly believe that the price of Breener Inc. stock will rise substantially from its current l...

A: Current, stock price, S0 = $ 137Amount to invest, A = $ 13,700Strike price on call option, K = $ 140...

Q: Brewster’s is considering a project with a 5-year life and an initial cost of $120,000. The discount...

A: The life of the project is 5 years. However, it can be abandoned at the end of 3 years for a sale va...

Q: Kelso Electric is an all-equity firm with 43,250 shares of stock outstanding. The company is conside...

A: As is situation: All equity, no debt, hence no interest payment, ignor taxes.Hence, Net income = EBI...

Q: Moerdyk Corporation's bonds have a 9-year maturity, a 7.75% semiannual coupon, and a par value of $1...

A: The price of a bond can be calculated using the PV function in excel. We have to select the inputs o...

Q: Whispering Pines Inc. is all-equity-financed. The expected rate of return on the company's shares is...

A: a.The opportunity cost of capital will still be 9.65%. Because the company is an equity financed com...

Q: Assume that you purchased an 8 percent, 20-year, $1,000 par, semiannual payment bond priced at $1,01...

A: We can find the yield using the RATE function of excel.Payment frequency = semi annual; Hence, perio...

Q: Your son has come to you for advice. He is about to enter college and has two options open to him. H...

A: As a first step, let's calculate the NPV of Pharmacy / MBA option making use of the cash flows. We w...

Q: I asked the question below earlier today, and got a response, but I didn't understand it.  I'm sure ...

A: Options are derivative contracts and we pay premium (the price of the option) to buy or sell an opti...

Q: Final Assignment Ed Draycutt is the engineering manager of Airway Technologies, a firm that makes co...

A: Evaluation of Ed’s analysis:Net present value is the one of the best techniques of capital budget as...

Q: A devoted Indiana basketball fan needs $11,200.00 to attend the Final Four exactly one year from tod...

A: As a first step let's assign a symbol to each of the information we have:Future value, FV = $ 11,200...

Q: Your firm has a risk-free investment opportunity where it can invest $160,000 today and receive $170...

A: Calculation of Interest Rate of the Project:The Interest Rate of the Project can be calculated using...

Q: Suppose that Sudbury Mechanical Drifters is proposing to invest $10.8 million in a new factory. It c...

A: Part (a)Annual depreciation rate under straight line method = 1 / useful life = 1/10 = 10%Hence, ann...

Q: A firm is considering an investment in a new machine with a price of $16.9 million to replace its ex...

A: Calculation of NPV and IRR of the New Machine:

Q: What are investment assets ?

A: Investment Assets: Investment assets are termed as tangible or intangible things that are acquired f...

Q: How do you calculate yield to maturity?

A: The yield to maturity is nothing but the interest rate of a bond. It can also be termed as the inter...

Q: What are the benefits of pro forma financial statements?

A: Pro forma financial statement:Pro forma financial statements is a report which are prepared on the b...

Q: In​ mid-2009, Rite Aid had​ CCC-rated,19​-year bonds outstanding with a yield to maturity of 17.3%. ...

A: Part (a)The required return for this investment is 5.34 %The required return for this investment = R...

Q: Block, S., Hirt, G., & Danielsen, B. (2017). Foundations of Financial Management. New York, NY: ...

A: Calculating of the expected retained profit for the next year. We have,Profit margin = 12 % of sales...

Q: Your firm is offered credit terms of 1/10, net 35. What is the effective annual interest rate on thi...

A: Calculating the value of effective interest rate on the credit terms. We have,Effective interest rat...

Q: Find the following values assuming a regular, or ordinary, annuity: The present value of $400 per...

A: Calculation of present value of $400 per year for 10 years at 10%: Excel spread sheet:

Q: Could you show me to solve this problem step by step. Please

A: The equation we have to solve is as shown on the white board. We will take the following approach.As...

Q: Chang Industries has bonds outstanding with a par value of $200,000 and a carrying value of $203,000...

A: Calculation of gain or loss on retirement:

Q: Capital budgeting problems  and what king of you used for solving (NPV and IRR PROBLEMS ) A firm has...

A: The question has 6 sub parts and we’re entitled to solve only 3 sub parts in one question. So, kindl...

Q: our father paid $10,000 (CF at t = 0) for an investment that promises to pay $850 at the end of each...

A: We have to essentially find the disocunt rate at which this investment has NPV of zero. Thus, we nee...

Q: Hero Manufacturing has 8.5 million shares of common stock outstanding. The current share price is $7...

A: As a first step we need to calculate the weigthed average pre tax cost of debt based on the characte...

Q: Garage, Inc., has identified the following two mutually exclusive projects:   Year Cash Flow (...

A: Note:We shall answer the first question since the exact one wasn’t specified. Please submit a new qu...

Q: Block, S., Hirt, G., & Danielsen, B. (2017). Foundations of Financial Management. New York, NY: ...

A: Break-even point It is the number of sales units at which a company can cover its costs (fixed and v...

Q: The rise of globalization is due to the many companies that have become multinational corporations f...

A: Relative interest rate constitute as one of the major factors in determining the exchange rates. For...

Q: What are spot rates and forward rates? Suppose you open the newspaper today and observe the followin...

A: Answer 1:The correct answer is “discount” in the forward market.Justification: This is because of th...

Q: Block, S., Hirt, G., & Danielsen, B. (2017). Foundations of Financial Management. New York, NY: ...

A: Part (A)City Farm has $5 million per day in collections and $3 million per day in disbursementsColle...

Q: Gulf Shores Inn is comparing two separate capital structures. The first structure consists of 315,00...

A: Calculating the price per share of equity of the company. We have,Let the price of equity share be X...

Q: Assume that you were recently hired as assistant to Jerry Lehman, financial VP of Coleman Technologi...

A: Note:Since we are entitled to answer up to 3 sub-parts, we shall answer the first 3 as you have not ...

Q: The Alenso corporation's target capital stucture is 50% debt and 50% common equity. The cost of comm...

A:  Formula to calculate WACC:

Q: Capital budgeting problems  and what king of you used for solving (NPV and IRR PROBLEMS ) A firm has...

A: All the financials in this solution are in $. Figures in parenthesis mean negative values.Based on t...

Q: Two bonds, bond A and bond B, are identical except that bond A is convertible and bond B is not. Whi...

A: A convertible bond has an option to convert into equity shares of the company, built into the bond. ...

Q: Compute internal rate of return (IRR), payback period, and profitability index (PI) for each project...

A: Calculate free cashflows as shown:

Q: Case Study #2: Chapter 5 Business Analysis - Harry, a friend of yours, is taking a course in economi...

A: If we have money today, we can use it in two ways:We can use the money to buy something that we want...

Q: The following numbers were randomly generated from a standard normal distribution: -0.25    0.3     ...

A: The formula for simulated price,S based on the initial closing price of S0 will be given by the equa...

Q: suppose the rate of $1 for yen is 83 yen, what is 2,5000,000 in dollar

A: Given amount = A = 25,000,000 YenExchange rate (Yen / $) = 83 ie. 83 Yen = 1 $We have to express A i...

Q: Suppose 1-year Treasury bonds yield 3.10% while 2-year T-bonds yield 4.80%.  Assuming the pure expec...

A: 1-year Treasury bonds yield, S01 =  3.10%2-year T-bonds yield, S02 =  4.80%. The yield on a 1-year T...

Q: Is there an easily identifiable debt-equity ratio that will maximize the value of a firm? Why or why...

A: No, there is no such ratios.

Q: Ferradini company's stock has a required rate of return of 12.50% and it sells for $18.00 per share....

A: Formula to calculate the last dividend:

Q: You need to borrow $139,970 to buy a Ferrari. The current loan rate is 4.99%compounded monthly and y...

A: Calculation of size of monthly payment: Excel spread sheet for PMT calculation:

Q: Better Mousetraps has developed a new trap. It can go into production for an initial investment in e...

A: At the outset, I want to bring to your notice that in the leading line of the question, we have been...

Q: What is the present value of an annuity that pays $200 per month for 10 years if money is worth 5% c...

A: Present Value:It is the discounted value of cash flows of different period or sum of future money fr...

Q: If the volatility of a stock is .33, find the standard deviation of: (see the attachment for the rem...

A: Recall the Black Scholes model derivation.Log of the stock price is normally distributed.The expecte...

Q: Modern Artifacts can produce keepsakes that will be sold for $60 each. Nondepreciation fixed costs a...

A: Your answers to part (a), (b) and (c) are correct. Hence, I am not solving them again. Further you h...

Q: What are the major flaws with NPV? What are the major flaws with IRR? If you are going to a bank and...

A: Major flaws with NPV:Requires an assumption of discount rate which is not directly observable in the...

Q: At the age of 33​, to save for​ retirement, you decide to deposit $80 at the end of each month in an...

A: NOTE: There is some information missing in the question. The retirement age in not mentioned in the ...

Q: You have your choice of two investment accounts. Investment A is a 9-year annuity that features end-...

A: All financials below are in $.Characterisitics of Investment A:Monthly annuity, M = 1,780Frequency i...