1) Presented below are the 2015 income statement and balance sheet of XYZ Corporation. Prepare a proforma balance sheet and identify the amount of external financing needed using the following assumptions 2) 3) This assignment is to be completed using excel Projection Assumptions: 2) Income statement assumptions: Sales are projected to increase to 14,400 aj Cost of goods sold and operating expenses as a percent of sales will remain the same b)Tax rate will remain the same Interest expense and investment income will remain the same Dividendpato stratibased on 360dayeri ad=30daw/ Zoday5% unts receivable collection period = 30 days 86s daus nventory holding period 36 days c) Accounts payable period 40 days uer credir sales vercledirsoks 5)-Cash will increase at the same rate as sales 6 Marketable securities and long-term investments will remain the same- Prepaid expenses will increase at the same rate as sales st Buildings, furniture, and equipment, net, will increase 2,000 .g) Accrued liabilities increase at the same rate as sales 101 Notes payable will remain the same 11)) Mortgages payable will be reduced by 250 L/T or Current? Income Statement Sales COGS Gross proft Operating expenses Earnings before interest and taxes Interest expense Investment income Earnings before taxes Taxes Net income Dividends Increase in retained earnings Retained earnings, beginning of year Retained earnings, end of year 12,000 7,200 4,800 3,600 350 200 50 300 900 270 630 126 504 8,646 9,150 Page 1 of 2 1) Presented below are the 2015 income statement and balance sheet of XYZ Corporation. Prepare a proforma balance sheet and identify the amount of external financing needed using the following assumptions 2) 3) This assignment is to be completed using excel Projection Assumptions: 2) Income statement assumptions: Sales are projected to increase to 14,400 aj Cost of goods sold and operating expenses as a percent of sales will remain the same b)Tax rate will remain the same Interest expense and investment income will remain the same Dividendpato stratibased on 360dayeri ad=30daw/ Zoday5% unts receivable collection period = 30 days 86s daus nventory holding period 36 days c) Accounts payable period 40 days uer credir sales vercledirsoks 5)-Cash will increase at the same rate as sales 6 Marketable securities and long-term investments will remain the same- Prepaid expenses will increase at the same rate as sales st Buildings, furniture, and equipment, net, will increase 2,000 .g) Accrued liabilities increase at the same rate as sales 101 Notes payable will remain the same 11)) Mortgages payable will be reduced by 250 L/T or Current? Income Statement Sales COGS Gross proft Operating expenses Earnings before interest and taxes Interest expense Investment income Earnings before taxes Taxes Net income Dividends Increase in retained earnings Retained earnings, beginning of year Retained earnings, end of year 12,000 7,200 4,800 3,600 350 200 50 300 900 270 630 126 504 8,646 9,150 Page 1 of 2
