Total Inc. 2006 Income Statement ($ in thousands) Net Sales 8,365.00 Less: Cost
ID: 2466385 • Letter: T
Question
Total Inc. 2006 Income Statement ($ in thousands) Net Sales 8,365.00 Less: Cost of goods sold 5412.00 Less Depreciation 525 Earnings before Interest & taxes 2,428.00 Less: Interest Paid 40 Taxable income 2,388.00 Net Income 1,526.00 Dividends 610 Retained Earnings 916 Total Inc 2006 Balance Sheet ($ in Thousands) Cash 188 Accounts rec 1,225 Inventory 1950 Total 3,363 Net Fixed Assets 4,500 Total Assets 7,863 2006 Accounts Payable 1,788 Long Term Debt 900 Common Stock 4000 Retained Earnings 1,175 Total Liabilities & equity 7,863 Using the information from above, please calculate a performa income and balance sheet for Total Inc. Please assume a 12.5% sales increase, no new capital purchases, dividend payout ratio rate remains unchanged, and tax rate remains unchanged. Depreciation is calculated on a straight - line basis.
Explanation / Answer
Proforma Income statement 2006 Projected in $ thousands in $ thousands Net Sales 8365 9,411 Less : Expenses - Cost of goods sold 5412 6,089 - Depreciation 525 525 EBIT 2428 2,797 Less : Interest paid 40 40 Taxable Income 2388 2,757 Less : Tax (balancing figure) 862 995 Net Income 1526 1,762 Less : Dividend paid 610 705 Retained Earnings 916 1,057 Proforma Balance sheet 2006 Projected in $ thousands in $ thousands Assets Cash 188 1,598 Accounts Receivable 1225 1,378 Inventory 1950 2,194 Net Fixed assets 4500 3975 Total Assets 7863 9,144 Liabilities & Equity Accounts Payable 1788 2,012 Long term debt 900 900 Common stock 4000 4000 Retained earnings 1175 2232 Total Liabilities & Equity 7863 9,144