A B C D E F G H K L M N O P Q R S &A Expense: 10 DURA-CLEAR WINDOWS, LLC 1 Find POS for past 3 years: 11 Proforma Income Statement 2020 2021 2022 12 2020 2021 2022 2023 2024 2025 2026 2027 13 2 Find average POS: 14 Sales (all on credit) 1,200,000 1,500,000 1,875,000 5,625,000 7,031,250 8,789,063 10,986,328 13,732,910 15 Cost of Goods Sold (800,000) (1,040,000) (1,105,000) 3,093,750 3,867,188 4,833,984 6,042,480 7,553,101 3 Use average POS to forecast: 16 Gross Profit 400,000 460,000 770,000 8,718,750 10,898,438 13,623,047 17,028,809 21,286,011 17 Selling and Administrative Expense (224,900) (270,500) (363,700) 2023 2024 2025 2026 2027 18 Rent Expense (15,000) (15,000) (15,000 19 Depreciation Expense (65,000) (76,500) (139,000) 20 Operating profit (EBIT) 95,100 98,000 252,300 Rent Expense: Given in Assumptions. 21 Interest expense (35,000) (45,000) (85,000 22 Net Income before Taxes 60,100 53,000 167,300 Depreciation Expense: Cannot be computed until the P&E line on the 23 Taxes (36,900) (49,200) (55,600) Balance Sheet is filled out. Then, P&E x 10% x (-1) 24 Net Income 23,200 3,800 111,700 25 Shares 60,000 60,000 78,000 2023 2024 2025 2026 2027 26 Earnings per Share $0.39 $0.26 $2.38 27 28 Interest Expense: Cannot be computed until the Long-Term 29 Liabilities line on the Balance Sheet is filled out. Then, 30 Forecasted Balance Sheet (30 points: 5 for showing work, 25 for accuracy) LT Liabilities x 10% x (-1) 31 32 DURA-CLEAR WINDOWS, LLC 2023 2024 2025 2026 2027 33 Proforma Balance Sheet 34 2020 2021 2022 2023 2024 2025 2026 2027 35 ASSETS Taxes: 36% tax rate, 50: 36 Cash 30,000 40,000 30,000 Net Income Before Taxes x .36 x (-1) 37 Marketable Securities 20,000 25,000 30,000 38 Accounts Receivable 170,000 259,000 360,000 2023 2024 2025 2026 2027 39 Inventory 230,000 261,000 290,000 40 Total Current Assets: 450,000 585,000 710,000 41 Plant and equipment 650,000 765,000 1,390,000 Shares: Given in Assumptions.A B C D E F G H I J K L M N O P Q R Net Plant and equipment 265,109 025, JUy 1, 105,J09 Latimes per Share. Tvet mcome / Snares Total Assets 1,035,000 1,208,500 1,819,500 LIABILITIES & STOCKHOLDER'S EQUITY BALANCE SHEET: Accounts Payable 200,000 310,000 505,000 Cash Given In Assumptions. Accrued Expenses 20,400 30,000 35,000 Marketable Securities Cash balance x 60% Total Current Liabilities 220,400 340,000 540,000 Accts Receivable Long-term Liabilities 325,000 363,600 703,900 Receivables Turnover = Credit Sales / Accounts Receivable Total Liabilities 545,400 703,600 1,243,900 Common Stock ($1 par) 60,000 60,000 78,000 1 Find RTO for past 3 years: Capital paid in excess of par 190,000 190,000 262,000 2020 2021 2022 Retained Earnings 239,600 254,900 235,600 Total Stockholder's Equity 489,600 504,900 575,600 2 Find average RTO: Total Liabilities & Stockholder's Equity 1,035,000 1,208,500 1,819,500 3 Rearrange formula to find Accounts Receivable: Accounts Receivable = Credit Sales / Receivables Turnover 4 Plug in Credit Sales from forecasted years and avg RTO: 2023 2024 2025 2026 2027 Inventory 1 Find POS for past 3 years: 2020 2021 2022 2 Find average POS: 3 Use average POS to forecast: 2023 2024 2025 2026 2027