Barry’s Superstore wishes to prepare financial plans. Use the financial statements on the next page and the other information provided below to prepare the financial plans. The following financial data are also available: (1) The firm has estimated that its sales for next year will be $130,000. (2) The firm expects to pay $30,000 in cash dividends. (3) The firm wishes to maintain a minimum cash balance of $25,000. (4) Accounts receivable represent approximately 20% of annual sales. (5) The firm’s ending inventory represents 60% of Cost of Goods Sold. (6) A new machine costing $15,000 will be purchased next year. (7) Accounts payable will increase by 5%. (8) Unearned Revenue will be earned. (9) Notes Payable would decrease by $5000. (10) Short-Term Investments and common stock will remain unchanged.   Requirement: Prepare a pro forma income statement for the year ended December 31, 2021, using the percent-of-sales method. Tax Rate is expected to be 15%. Prepare a pro forma balance…

In January 2024, Summit Department Store sells a gift card for $90 and receives cash. In February 2024 the customer comes back and spends $60 of the gift card to purchase a water bottle. What is the financial statement effect of the customer's purchase of the water bottle in February? Multiple Choice Increase assets by $30, decrease liabilities by $90, and increase stockholders' equity by $60 Decrease liabilities by $6 O and increase stockholders' equity by 560 increase assets by $60 and increase stockholders' equity by $60 Increase assets by $30, decrease liabilities by $60, and increase stockholders equity by $90

Upton Computers makes bulk purchases of small computers, stocks them in conveniently located warehouses, ships them to its chain of retail stores, and has a staff to advise customers and help them set up their new computers. Upton’s balance sheet as of December 31, 2019, is shown here (millions of dollars):  Sales for 2019 were $350 million, and net income for the year was $10.5 million, so the firm’s profit margin was 3.0%. Upton paid dividends of $4.2 million to common stockholders, so its payout ratio was 40%. Its tax rate was 25%, and it operated at full capacity. Assume that all assets/sales ratios, (spontaneous liabilities)/sales ratios, the profit margin, and the payout ratio remain constant in 2020.a. If sales are projected to increase by $70 million, or 20%, during 2020, use the AFN equation to determine Upton’s projected external capital requirements.b. Using the AFN equation, determine Upton’s self-supporting growth rate. That is, what is the maximum growth rate the firm can…

Assume that you are purchasing an investment and have decided to invest in a company in the digital phone business. You have narrowed the choice to Digitized Corp. and Very Network​, Inc. and have assembled the following data. LOADING... ​(Click to view the income statement​ data.) Data Table Selected income statement data for the current​ year:     Digitized Very Network Net Sales Revenue (all on credit) $418,290 $494,940 Cost of Goods Sold 210,000 256,000 Interest Expense 0 15,000 Net Income 62,000 70,000 ​(Click to view the balance sheet and market price​ data.) Data Table Selected balance sheet and market price data at the end of the current​ year:     Digitized Very Network Current Assets:     Cash $24,000 $21,000 Short-term Investments 42,000 19,000 Accounts Receivables, Net 36,000 46,000 Merchandise Inventory 67,000 98,000 Prepaid Expenses 22,000 18,000 Total…

It is January 1st, 2014 and Oscar D’Souza has decided to start a new business. He wants to forecast the first year’s Income Statement and Balance sheet.  He believes the assumptions below are reasonable – and wants you to assist him by creating the forecasted statements.  You agree.  Please construct an Income Statement and Balance Sheet from the information provided below.    First year sales will total $100,000 Gross margins will be 50% Operating margins will be 20% Accounts Receivables will be about 15% of sales Inventory will be 12% of sales Accounts Payable will be 5% of sales Accrued expenses payable will be 7% of sales The Bank of Connecticut will provide a loan of $30,000. The annual interest will be 8%, compounded annually.  Interest only payments are needed – until the loan is due in 5 years, where a balloon payment for the full balance must be paid. The combined federal and provincial tax rates will be 30% Capital equipment purchases will be made at the start of the year.…

DO IT IN EXCEL AND SHOW FORMULAS DO IT IN EXCEL AND SHOW FORMULAS Jorge Del Llano, a start-up merchant, needs $360,000.00 liquid to invest in inventory and pay certain start-up expenses for his business. The Bank has investigated him and considers him eligible for credit. The Bank authorizes an unsecured credit facility, subject to the provision of a line of credit appropriate to your needs, charging 18% interest for a term of 60 days. The origination fee is 1.25%. For what amount was the loan signed for Del Llano to receive the $360,000 free of charge?

The following information of ABC Merchandise Business for the year ended 31st December 2020 Account Amount (OMR) Sales Discounts 2200 Sales returns 22,000 Sales 257,000 Interest revenue 1000 Gain on Sale of land 2000 Interest expense 7,000 Salesman Salaries 38,000 Office rent 1400 Cost of Goods sold 160,000 Electricity expense – Office 300 Rent expense - office 100 Salesman commission 12500 Advertising expense 3500 Marketing expense 2500 Other non-operating expense 1000 What will be the Net sales assumes that the business follows Multi-step income statement? a. OMR 254,400 b. OMR 232,800 c. OMR 24,400 d. OMR 260,000

Which of the following statements is TRUE? If a company provides service and bills its client $20,000, the journal entry to record this transaction will cause Total Assets to increase. If a company collects a cash deposit of $20,000 for services not yet performed, the journal entry to record this transaction will cause Net Income to increase. If a company pays $20,000 for inventory previously purchased on account, the journal entry to record this payment will cause Total Liabilities to increase. None of the above.

From the following balances extracted from the books of M/s Ahuja and Nanda. Calculate the amount of: (a) Cost of goods available for sale (b) Cost of goods sold during the year Rs Opening stock 25,000 Credit purchases 7,50,000 Cash purchases 3,00,000 Credit sales 12,00,000 Cash sales 4,00,000 Wages 1,00,000 Salaries 1,40,000 Closing stock 30,000 Sales return 50,000 Purchases return 10,000