I need help with this question Joshua Pro Forma Assignment 9.19.18-1.doc Protect

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I need help with this question

Joshua Pro Forma Assignment 9.19.18-1.doc Protected View Saved to this PC s Mailings Review View Help Foxit PDF Tell me what you want to do ntain viruses. Unless you need to edit, it's safer to stay in Protected View.E t Enable Editing JOSHUA, INC. Pro Forma Statements Problem Income Statement Year Ended 2017 Balance Sheet 12/31/17 Sales Cost of Goods Sold Gross Profit Expenses Earnings Before Tax Tax (5) Net Income $27,000 18,900 8,100 Cash Accounts Receivable Inventory Gross Fixed Assets Accumulated Depreciation Net Fixed Assets Total Assets s 500 4.500 3,150 54,000 21.600 2,100 1,050 $ 1050 32400 Accounts Payable Notes Payable Accrued Tax Common Stock Retained Eamings Total Debt & Equity $ 1,575 19,175 263 15,787 $40 550 A. Based on the 2017 Financial Statements above, compute Pro Forma's for 2018 using the percent of sales method using the following assumptions a. b, 20% growth rate in sales, and 15% dividend payout

Explanation / Answer

Income Statement Year ended 2018 Sales [$27000*120%] $32,400.00 Cost of goods sold [70% of sales] $22,680.00 Gross Profit $9,720.00 Expenses $7,200.00 Earnings Before tax $2,520.00 Tax [50%] $1,260.00 Net Income $1,260.00 Addition to retained earnings = Net Income x (1-dividend payout ratio) Addition to retained earnings = $1260 x (1-0.15) = $1071 Balance Sheet 31.12.2018 Assets Cash $600.00 Accounts Receivables $5,400.00 Inventory $3,780.00 Gross Fixed Assets $64,800.00 Less : Accumulated Depreciation $25,920.00 Net Fixed Assets $38,880.00 Total Assets $48,660.00 Liabilities and Equity Accounts Payable $1,890.00 Notes Payable $23,010.00 Accrued Tax $315.60 Common stock $18,944.40 Retained Earnings $4,500.00 Total Debt & Equity $48,660.00

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