the pro forma balance sheet still has to be completed. The following information is available as 12/31/X8. Prior Year Balance Sheet Assets Cash $45,000 Accounts Receivable $55,000 Materials Inventory $40,000 Work-in-Process Inventory $30,000 Finished Goods Inventory $36,000 Prepaid Expenses $20,000 Plant and Equipment $500,000 Accumulated Depreciation ($140,000) Other Assets $22,000 Total Assets $608,000 Liabilities and Equity Accounts Payable $103,000 Other Current Liabilities $42,000 Income Taxes Payable $25,000 Long-Term Debt $300,000 Total Liabilities $470,000 Common Stock $100,000 Retained Earnings $38,000 Total Equity $138,000 Total Liabilities and Equity $608,000 Information From Recent Budgets for the Coming Year Projected sales are $2,080,000 (13,000 units). Projected direct materials purchases are $525,000. Projected direct materials usage is $510,000. Projected direct labor expense is $420,000. Projected overhead is $390,000. Projected selling expenses are $130,000. Projected administrative expenses are $310,000. Projected cash collections are $1,805,000. Projected payments for materials (accounts payable) are $550,000. Projected payments for other operating expenses (other current liabilities) are $1,155,000. Projected depreciation expense is $60,000 and is already included in manufacturing overhead. Additional Information That Is Available The expected tax rate is 20%. The company is planning a stock issue of $50,000. Income taxes are paid 3 months after year-end. The company anticipates purchasing a new patent for $20,000 during the year. Work-in-Process Inventory is expected to decrease by $2,500. Finished Goods Inventory is expected to increase by $9,000. Due to insurance rate increases, it is expected that prepaid expenses will increase by $5,000. Investment Information A purchase of additional equipment for $80,000 is expected on January 2, 20X9. The purchase will be made using $50,000 cash and long-term debt will be increased by $30,000. Long-Term Debt Information All long-term debt will have a 9% annual rate. A payment of $50,000 including both principal and interest will be made on December 31, 20X9. PLEASE SOLVE THE FOLLOWING: Prepare a pro forma balance sheet still has to be completed.

the pro forma balance sheet still has to be completed. The following information is available as 12/31/X8. Prior Year Balance Sheet Assets Cash $45,000 Accounts Receivable $55,000 Materials Inventory $40,000 Work-in-Process Inventory $30,000 Finished Goods Inventory $36,000 Prepaid Expenses $20,000 Plant and Equipment $500,000 Accumulated Depreciation ($140,000) Other Assets $22,000 Total Assets $608,000 Liabilities and Equity Accounts Payable $103,000 Other Current Liabilities $42,000 Income Taxes Payable $25,000 Long-Term Debt $300,000 Total Liabilities $470,000 Common Stock $100,000 Retained Earnings $38,000 Total Equity $138,000 Total Liabilities and Equity $608,000 Information From Recent Budgets for the Coming Year Projected sales are $2,080,000 (13,000 units). Projected direct materials purchases are $525,000. Projected direct materials usage is $510,000. Projected direct labor expense is $420,000. Projected overhead is $390,000. Projected selling expenses are $130,000. Projected administrative expenses are $310,000. Projected cash collections are $1,805,000. Projected payments for materials (accounts payable) are $550,000. Projected payments for other operating expenses (other current liabilities) are $1,155,000. Projected depreciation expense is $60,000 and is already included in manufacturing overhead. Additional Information That Is Available The expected tax rate is 20%. The company is planning a stock issue of $50,000. Income taxes are paid 3 months after year-end. The company anticipates purchasing a new patent for $20,000 during the year. Work-in-Process Inventory is expected to decrease by $2,500. Finished Goods Inventory is expected to increase by $9,000. Due to insurance rate increases, it is expected that prepaid expenses will increase by $5,000. Investment Information A purchase of additional equipment for $80,000 is expected on January 2, 20X9. The purchase will be made using $50,000 cash and long-term debt will be increased by $30,000. Long-Term Debt Information All long-term debt will have a 9% annual rate. A payment of $50,000 including both principal and interest will be made on December 31, 20X9. PLEASE SOLVE THE FOLLOWING: Prepare a pro forma balance sheet still has to be completed.

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter6: Statement Of Cash Flows

Section: Chapter Questions

Problem 25E

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Prior Year Balance Sheet

Assets
Cash	$45,000
Accounts Receivable	$55,000
Materials Inventory	$40,000
Work-in-Process Inventory	$30,000
Finished Goods Inventory	$36,000
Prepaid Expenses	$20,000
Plant and Equipment	$500,000
Accumulated Depreciation	($140,000)
Other Assets	$22,000
Total Assets	$608,000

Liabilities and Equity

Accounts Payable	$103,000
Other Current Liabilities	$42,000
Income Taxes Payable	$25,000
Long-Term Debt	$300,000
Total Liabilities	$470,000
Common Stock	$100,000
Retained Earnings	$38,000
Total Equity	$138,000
Total Liabilities and Equity	$608,000

Information From Recent Budgets for the Coming Year

Projected sales are $2,080,000 (13,000 units).
Projected direct materials purchases are $525,000.
Projected direct materials usage is $510,000.
Projected direct labor expense is $420,000.
Projected overhead is $390,000.
Projected selling expenses are $130,000.
Projected administrative expenses are $310,000.
Projected cash collections are $1,805,000.
Projected payments for materials (accounts payable) are $550,000.
Projected payments for other operating expenses (other current liabilities) are $1,155,000.
Projected depreciation expense is $60,000 and is already included in manufacturing overhead.

Additional Information That Is Available

The expected tax rate is 20%.
The company is planning a stock issue of $50,000.
Income taxes are paid 3 months after year-end.
The company anticipates purchasing a new patent for $20,000 during the year.
Work-in-Process Inventory is expected to decrease by $2,500.
Finished Goods Inventory is expected to increase by $9,000.
Due to insurance rate increases, it is expected that prepaid expenses will increase by $5,000.

Investment Information

A purchase of additional equipment for $80,000 is expected on January 2, 20X9.
The purchase will be made using $50,000 cash and long-term debt will be increased by $30,000.

Long-Term Debt Information

All long-term debt will have a 9% annual rate.
A payment of $50,000 including both principal and interest will be made on December 31, 20X9.

PLEASE SOLVE THE FOLLOWING: Prepare a pro forma balance sheet still has to be completed.

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