From the balance sheet prepare a proforma income statement where revenues can increase by 2% and the firm can borrow at 5.5%BALANCE SHEET 2021Cash and cash equivalents280Receivables2588Inventory2516Other CA189TOTAL CA5573Fixed assets5024TOTAL ASSETS10597Accounts payable4713Short term debt78TOTAL CL4790LT debt921Shareh. Equity4886TOTAL LIAB. AND SHARH. EQUITY10597 INCOME STATEMENT2021Sales19418COGS13136Depreciations354SG&A4952EBIT976Interest Expenses52Tax268Net income656Pro-forma statementPro Forma ForecastsActualProjectedProjectedProjectedProjectedProjected 202120222023202420252026COGS/REVENUES SGA/SALES INVENTORIES/COGS OTHER CA/SALES AR/SALES AP/COGS SALES/FIXED ASSETS DEPR/ FIXED ASSETS EQUITY/INVESTED CAPITAL ST DEBT/INVESTED CAPITAL LT DEBT/INVESTED CAPITAL TAX RATE DEPRECIATION / FIXED ASSETS Revenue growth rate

A projected income statement is a statement in which the future income statements are projected by…

Answered: From the balance sheet prepare a…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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From the balance sheet prepare a proforma income statement where revenues can increase by 2% and the firm can borrow at 5.5%

BALANCE SHEET	2021
Cash and cash equivalents	280
Receivables	2588
Inventory	2516
Other CA	189
TOTAL CA	5573
Fixed assets	5024
TOTAL ASSETS	10597
Accounts payable	4713
Short term debt	78
TOTAL CL	4790
LT debt	921
Shareh. Equity	4886
TOTAL LIAB. AND SHARH. EQUITY	10597

INCOME STATEMENT	2021
Sales	19418
COGS	13136
Depreciations	354
SG&A	4952
EBIT	976
Interest Expenses	52
Tax	268
Net income	656

Pro-forma statement

Pro Forma Forecasts	Actual	Projected	Projected	Projected	Projected	Projected
	2021	2022	2023	2024	2025	2026
COGS/REVENUES
SGA/SALES
INVENTORIES/COGS
OTHER CA/SALES
AR/SALES
AP/COGS
SALES/FIXED ASSETS
DEPR/ FIXED ASSETS
EQUITY/INVESTED CAPITAL
ST DEBT/INVESTED CAPITAL
LT DEBT/INVESTED CAPITAL
TAX RATE
DEPRECIATION / FIXED ASSETS
Revenue growth rate

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