BIGG Co. projects that their sales will increase from $40 million in 2017 to $60 million in year 2018. All of the company's assets will rise with the sales. Same as its accounts payable and accruals. The company has already conducted pro forma income statement, and found that they will make $10 million net income in 2018 and have $3 million added to the company's retained earnings. The company plans to make no change in its common stock. Sam is now working on setting up the pro forma balance sheet for 2018. He is half way through and already calculated a few accounts. You are required to help him to finish the rest of the work and find the AFN to support its sales growth. (To earn ANY credit, you MUST use Pro Forma method and SHOW YOUR WORK in each calculation.) 2017 Balance Sheet (Millions of $) Cash 80.00 Accounts payable 190.00 Accounts receivable 170.00 Notes payable 200.00 Inventories 500.00 Accruals 140.00 Total CA 750.00 Total CL 530.00 Fixed assets 450.00 Long-term debt 340.00 Common stock 200.00 Retained Earnings 130.00 Total assets 1200.00 Total liabilities and equity 1200.00 Sam's incomplete Pro Forma Balance Sheet for 2008: (Show your calculation and fill out the blanks) JACO inventories Total CA 120 Accounts payable 255 Notes payable Accruals TotalCL 675 Long-term debet Fixed assets 340 Common stock Total assets Retained Earnings Total liabilities and equity AFN BIGG Co. projects that their sales will increase from $40 million in 2017 to $60 million in year 2018. All of the company's assets will rise with the sales. Same as its accounts payable and accruals. The company has already conducted pro forma income statement, and found that they will make $10 million net income in 2018 and have $3 million added to the company's retained earnings. The company plans to make no change in its common stock. Sam is now working on setting up the pro forma balance sheet for 2018. He is half way through and already calculated a few accounts. You are required to help him to finish the rest of the work and find the AFN to support its sales growth. (To earn ANY credit, you MUST use Pro Forma method and SHOW YOUR WORK in each calculation.) 2017 Balance Sheet (Millions of $) Cash 80.00 Accounts payable 190.00 Accounts receivable 170.00 Notes payable 200.00 Inventories 500.00 Accruals 140.00 Total CA 750.00 Total CL 530.00 Fixed assets 450.00 Long-term debt 340.00 Common stock 200.00 Retained Earnings 130.00 Total assets 1200.00 Total liabilities and equity 1200.00 Sam's incomplete Pro Forma Balance Sheet for 2008: (Show your calculation and fill out the blanks) JACO inventories Total CA 120 Accounts payable 255 Notes payable Accruals TotalCL 675 Long-term debet Fixed assets 340 Common stock Total assets Retained Earnings Total liabilities and equity AFN
