Question
Amounts are in thousands of dollars (except number of shares and price per share): Kiwi Fruit Company Balance Sheet Cash and equivalents $ 570 Operating
Amounts are in thousands of dollars (except number of shares and price per share): |
Kiwi Fruit Company Balance Sheet | ||
Cash and equivalents | $ | 570 |
Operating assets |
| 650 |
Property, plant, and equipment |
| 2,700 |
Other assets |
| 110 |
| ||
Total assets | $ | 4,030 |
| ||
Current liabilities | $ | 920 |
Long-term debt |
| 1,280 |
Other liabilities |
| 120 |
| ||
Total liabilities | $ | 2,320 |
| ||
Paid in capital | $ | 340 |
Retained earnings |
| 1,370 |
| ||
Total equity | $ | 1,710 |
| ||
Total liabilities and equity | $ | 4,030 |
| ||
Kiwi Fruit Company Income Statement | |||
Net sales | $ | 7,800 |
|
Cost of goods sold |
| (5,900 | ) |
| |||
Gross profit | $ | 1,900 |
|
Operating expense |
| (990 | ) |
| |||
Operating income | $ | 910 |
|
Other income |
| 105 |
|
Net interest expense |
| (200 | ) |
|
| ||
Pretax income | $ | 815 |
|
Income tax |
| (285 | ) |
| |||
Net income | $ | 530 |
|
| |||
Earnings per share | $ | 2.00 |
|
Shares outstanding |
| 265,000 |
|
Recent price | $ | 34.50 |
|
Kiwi Fruit Company Cash Flow Statement | |||
Net income | $ | 530 | |
Depreciation and amortization |
| 175 |
|
Changes in operating assets |
| (90 | ) |
Changes in current liabilities |
| (120 | ) |
| |||
Operating cash flow | $ | 495 |
|
|
|
|
|
Net additions to properties | $ | 180 |
|
Changes in other assets |
| (80 | ) |
| |||
Investing cash flow | $ | 100 |
|
|
|
|
|
Issuance/redemption of long-term debt | $ | (190 | ) |
Dividends paid |
| (220 | ) |
| |||
Financing cash flow | $ | (410 | ) |
Net cash increase | $ | 95 |
|
| |||
Prepare a pro forma income statement, balance sheet, and cash flow statement for Kiwi Fruit assuming a 10 percent increase in sales. |
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