ASSUMPTIONS: the increase in Sales percentage will be assumed to apply only to the COGS on the Income Statement, with the other items assumed to be fixed costs. Deprec & Amort, Change in Operating Assets, Change in Current Liabilities, & Dividends Paid are constant (i.e., same as last year). Net Additions to Property, Change to Other Assets, & Change in Long-term debt are $0.
Amounts are in thousands of dollars (except number of shares and price per share): Kiwi Fruit Company Balance Sheet Cash and equivalents Operating assets Property, plant, and equipment Other assets $ 570 650 2,700 110 Total assets $4,030 Current liabilities $ 920 1,280 Long-term debt Other liabilities 120 Total liabilities $2,320 Paid in capital Retained earnings $ 340 1,370 Total equity $1,710 Total liabilities and equity 4,030 Kiwi Fruit Company Income Statement $ Net sales Cost of goods sold 7,800 (5,900) $ Gross profit Operating expense 1,900 (990) $ Operating income Other income Net interest expense 910 105 (200) $ Pretax income Income tax 815 (285) Net income $ 530 Earnings per share Shares outstanding Recent price $ 2.00 265,000 $ 34.50 Kiwi Fruit Company Cash Flow Statement Net income Depreciation and amortization Changes in operating assets Changes in current liabilities $ 530 175 (90) (120) Operating cash flow $ 495 $ 180 Net additions to properties Changes in other assets (80) Investing cash flow $ 100 $ (190) Issuance/redemption of long-term debt Dividends paid (220) Financing cash flow Net cash increase $ (410) $ 185 Prepare a pro forma income statement, balance sheet, and cash flow statement for Kiwi Fruit assuming a 10 percent increase in sales. (Leave no cells blank - be certain to enter "O" wherever required. Negative amounts should be indicated by a minus sign. Input all amounts as thousands of dollars. Round earnings per share to 2 decimal places. Omit the "$" sign in your response.) Kiwi Fruit Company Pro Forma Income Statement $ Net sales Cost of goods sold 8580 -6490 $ Gross profit Operating expense $ Operating income Other income Net interest expense $ Pretax income Income tax Net income $ $ Earnings per share Shares outstanding Kiwi Fruit Company Pro Forma Cash Flow Statement Net income Depreciation and amortization Changes in operating assets Changes in current liabilities Operating cash flow Net additions to property Changes in other assets ta ta Investing cash flow $ Issuance/redemption of long-term debt Dividends paid HII Im Financing cash flow Net cash increase A tA Kiwi Fruit Company Pro Forma Balance Sheet Cash and equivalents Operating assets Property, plant, and equipment Other assets Total assets $ $ Current liabilities Long-term debt Other liabilities Total liabilities Paid in capital Retained earnings AtA Total equity Total liabilities and equity At
