Balance Sheet December 31, 2008 Cash 20,000 Accounts Receivable 50,000 Inventories 70,000 Current Assets 140,000 Net fixed Assets 320,000 Total assets 460,000 Notes payable 15,000 Accounts payable 35,000 Accruals 20,000 Current Liabilities 70,000 Long term debt 200,00 Common stock 140,000 Retained Earnings 50,000 Total Liabilities and Equity 460,000 Balance Sheet December 31, 2009 Cash 30,000 Accounts Receivable 45,000 Inventories 95,000 Current Assets 170,000 Net fixed Assets 340,000 Total assets 510,000 Notes payable 15,000 Accounts payable 50,000 Accruals 20,000 Current Liabilities 85,000 Long term debt 210,00 Common stock 150,000 Retained Earnings 65,000 Total Liabilities and Equity 510,000 Income Statement December 31, 2009 Sales 400,000 Cost of goods sold 200,000 Gross profit 200,000 Operating expense 90,000 Depreciation 40,000 Operating profit 70,000 Interest 10,000 EBT 60,000 tax 15,000 Net income 45,000 16 Total cash flow was $ a 10,000 b 15,000 c 10,000 d 15,000 17 Cash flow from operations was $ a 70,000 b 70,000 c 80,000 d 80,000 18 Cash flow from investing was $ a 60,000 b 60,000 c 20,000 d 20,000 19 Cash flow from financing was $ a 30,000 b 30,000 c 10,000 d 10,000 20 Dividends paid was $ a 15,000 b 20,000 c 25,000 d 30,000 Use the following to answer 21 25 Assume the firm plans to grow at 40 in 2010 The firm will pay a dividend of $30,000 The firm wants a current ratio of 1 75 and a debt ratio of 60 Net profit margin in 2010 will be the same as in 2009 Construct a pro forma balance sheet 21 Net income in 2010 is projected to be $ a 45,000 b 63,000 c 52,000 d 60,000 22 Outside funds needed will be $ a 125,000 b 133,000 c 123,000 d 143,000 23 Notes payable will be $ in 2010 a 15,000 b 21,000 c 27,000 d 38,000 24 Long term debt will be $ in 2010 a 292,400 b 282,400 c 272,400 d 262,400 25 Common stock will be $ in 2010 a 167,600 b 177,600 c 187,600 d 197,600 PLEASE SHOW WORKING

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Balance Sheet December 31, 2008 Cash 20,000 Accounts Receivable 50,000 Inventories 70,000 Current Assets 140,000 Net fixed Assets 320,000 Total assets 460,000 Notes payable 15,000

Balance Sheet December 31, 2008

Cash	20,000
Accounts Receivable	50,000
Inventories	70,000
Current Assets	140,000
Net fixed Assets	320,000
Total assets	460,000
Notes payable	15,000
Accounts payable	35,000
Accruals	20,000
Current Liabilities	70,000
Long-term debt	200,00
Common stock	140,000
Retained Earnings	50,000
Total Liabilities and Equity	460,000

Balance Sheet December 31, 2009

Cash	30,000
Accounts Receivable	45,000
Inventories	95,000
Current Assets	170,000
Net fixed Assets	340,000
Total assets	510,000
Notes payable	15,000
Accounts payable	50,000
Accruals	20,000
Current Liabilities	85,000
Long-term debt	210,00
Common stock	150,000
Retained Earnings	65,000
Total Liabilities and Equity	510,000

Income Statement December 31, 2009

Sales	400,000
Cost of goods sold	200,000
Gross profit	200,000
Operating expense	90,000
Depreciation	40,000
Operating profit	70,000
Interest	10,000
EBT	60,000
tax	15,000
Net income	45,000

16. Total cash flow was $_______. a. 10,000 b. 15,000 c. -10,000 d. -15,000 17. Cash flow from operations was $________. a. 70,000 b. -70,000 c. 80,000 d. -80,000 18. Cash flow from investing was $________. a. -60,000 b. 60,000 c. -20,000 d. 20,000 19. Cash flow from financing was $_______. a. 30,000 b. -30,000 c. 10,000 d. -10,000 20. Dividends paid was $_______. a. 15,000 b. 20,000 c. 25,000 d. 30,000

Use the following to answer 21 25. Assume the firm plans to grow at 40% in 2010. The firm will pay a dividend of $30,000. The firm wants a current ratio of 1.75 and a debt ratio of 60%. Net profit margin in 2010 will be the same as in 2009. Construct a pro forma balance sheet. 21. Net income in 2010 is projected to be $_______. a. 45,000 b. 63,000 c. 52,000 d. 60,000 22. Outside funds needed will be $_________. a. 125,000 b. 133,000 c. 123,000 d. 143,000

23. Notes payable will be $______ in 2010. a. 15,000 b. 21,000 c. 27,000 d. 38,000 24. Long-term debt will be $______ in 2010. a. 292,400 b. 282,400 c. 272,400 d. 262,400 25. Common stock will be $______ in 2010. a. 167,600 b. 177,600 c. 187,600 d. 197,600

PLEASE SHOW WORKING