12. Pro forma balance sheet.

California Cement Company

Balance Sheet for the Year Ending 2013

Current Assets

Cash $1,447,000

Marketable Securities 1,129,000

Accounts Receivable 3,769,000

Inventories 2,601,000

Total Current Assets $ 8,946,000

Long-term Assets

Plant, Property & Equip. $ 6,760,000

Goodwill 4,082,000

Intangible Assets 1,506,000

Total Long-term Assets $12,348,000

TOTAL ASSETS $21,294,000

Current Liabilities

Accounts Payable $ 6,125,000

Other Current Liabilities $ 1,198,000

Total Current Liabilities $ 7,323,000

Long-term Liabilities

Long-Term Debt $ 2,488,000

Other Long-term Liab. $ 1,524,000

Total Long-Term Liabilities $ 4,012,000

TOTAL LIABILITIES $11,335,000

Owners Equity

Common Stock $ 2,493,000

Retained Earnings $ 7,466,000

TOTAL OWNERS EQUITY $ 9,959,000

TOTAL LIABILITIES & OWNERS EQUITY $21,294,000

Next year, California Cement Company will increase its Plant, Property, and Equipment (PPE) by $6,000,000 with a plant expansion. The inventories will grow by 80%, accounts receivable will grow by 70%, and marketable securities will be reduced by 60% to help finance the expansion. If all other asset accounts remain the same and long-term debt will be used to finance the remaining costs of the expansion (no change in common stock or retained earnings), prepare a pro forma balance sheet for 2014. How much additional debt will be estimated using this pro forma balance sheet?

See Template on the Next page

California Cement Company Pro Forma Balance Sheet for the Year Ending 2014
Current Assets
Cash	$1,447,000
Marketable Securities	1,129,000 * .40
Accounts Receivable	3,769,000 * 1.70
Inventories	2,601,000 * 1.80
Total Current Assets		*
Long-Term Assets
Plant, Property, & Equip.	$12,760,000
Goodwill
Intangible Assets
Total Long-Term Assets		*
Total Assets		*
Current Liabilities
Accounts Payable
Other Current Liabilities
Total Current Liabilities		*
Long-Term Liabilities
Long-Term Debt
Other Long-Term Liab.	$1,524,000
Total Long-Term Liabilities		*
Total Liabilities
Owners Equity
Common Stock
Retained Earnings
Total Owners Equity		*
Total Liabilities & Owners Equity		*
Change in long-term debt: $ - $2,488,000 = $