FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Tomey Supply Company’s financial statements for the most recent fiscal year are shown below. The company projects that sales will increase by 27 percent next year. Assume that all costs and assets increase directly with sales. The company has a constant 39 percent dividend payout ratio and has no plans to issue new equity. Any financing needed will be raised through the sale of long-term debt. Prepare pro forma financial statements for the coming year based on this information, and calculate the EFN for Tomey.

Tomey Supply Company Income Statement and Balance Sheet.

                   
Income Statement   Balance Sheet              
Revenues $1,768,121   Assets            
Costs 1,116,487   Current Assets $280,754          
EBT 651,634   Net Fixed Assets

713,655

         
Taxes (35%)

228,072

  Total assets $994,409          
Net Income $423,562                
      Liabilities and Equity:            
      Current Liabilities $167,326          
      Long-term debt 319,456          
      Common Stock 200,000          
      Retained Earnings 307,627          
      Total liabilities & equity $994,409          
                   
                   
                   
                   
                   
                   
                   
                   
                   
                   
                   
                   
                   
                   
                   
                   
                   
                   
                   
                   
                   
                   
                   
                   
                   
                   
                   
                   
                   
                   
                   
                   
                   
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