Chapter 3 - Pro Forma Exercise Name To the best of your ability and using the methodology in Chapter 3 from Analysis for Financial Management, use the following spread and assumptions to create a pro forma balance sheet and income statement for XYZ Corporation. Round your answers to the nearest whole dollar amount and place your answers in the numbered pro forma below. (Hint: #12 is a plug, which is equal to External Financing Required.) 50 Days of S, G, & A Expenses 30% 60 45 Assumptions for Pro Forma (2012) Required Cash on Hand Sales Growth Rate Accounts Payable Period (Days) Accounts Receivable Collection Period (Days) Inventory Turnover Gross Profit Margin Selling, General, and Administrative Expenses Retention Ratio Tax Rate 9 times 13% 12% of Sales 50% 45% Pro Forma 2009 2010 2012 $13,764 $11,699 $2,065 100.0% 5. Ox 15.0% $16.104 $13,688 $2,416 100.0% 85.0% 15.0% 2011 $20.613 $17,727 $2,886 100.0% 860 14.0% Net Sales COGS Gross Profit Expenses S, G, & A Net Interest Expense Earnings before Tax Tax Earnings after Tax $2,267 $90 11.0% $1.239 $103 S723 $325 $398 90 0.7% 53% 2.4% 2.9% $1,610 $110 $696 $313 $383 100% 0.7% 4.3% 19% 2.4% $529 0.4% 2.6 $238 $291 1.25 14% 2009 2010 Pro Forma 2012 2011 Assets Current Assets Cash and Securities Accounts Receivable Inventories Prepaid Expenses Total Current Assets Net Fixed Assets Total Assets $551 14.3% $1,789 46.4% $1,376 35.7% $120.3% $3,728 96.8% $124 3.2% $3,852 100.0% $644 12.9% $2,094 42.0% $1,932 38.8% $150.3% $4,685 94.1% $295 5.9% $4,980 100.0% $412 $2,886 $2,267 $18 7.0% 49.2% 38.6% 0.3% 95.1% 4.9% 100.0% $5,583 $287 $5,870 Liabilities and Owner's Equity Current Liabilities Bank Loan Accounts Payable CMLTD Accrued Wages Total Current Liabilities Long Term Debt Total Liabilities Common Stock Retained Earnings Total Owner's Equity Total Liabilities and Owner's Equity $50 $1,443 $50 $7 $1,550 $910 $2,460 $150 $1,242 $1,392 1.3% 37.5% 1.3% 0.2% 40.2% 23.6% 63.9% 3.9% 32.2% 36.1% $50 1.0% $2,426 48.7% $50 1.0% $10 0.2% $2,536 50.9% $860173% $3,396 68.2% $150 3.0% $1,434 28.8% $1,584 31.8% $50 $3,212 $100 $18 $3,380 $760 $4,140 $150 $1,580 $1,730 0.9% 54.7% 1.7% 0.3% 57.6% 12.9% 70.5% 2.6% 26.9% 29.5% $3,852 100.0% $4,980 100.0% $5,870 100.0% Place your answers in the blanks below. The blanks above are provided only as a reference/work area (000's) Pro Forma 2012 Net Sales 2197 1. 2013 (203.30) COGS 2 045 2.B6% of Netsalt - 20,797(-) 2. R Gross Profit 3.752 3 .Ne tale - COGS Expenses S, G, & A 3.2.1 124 tales Net Interest Expense $95 Earnings before Tax 441 5. GP G penget) - Lot expense 198 6 . Earnings before bax 441 X Tax rate (45%). Earnings after Tax 243 7. Earnings before tax - Tax Pro Forma 2012 Assets Current Assets Cash and Securities Accounts Receivable Inventories Prepaid Expenses Total Current Assets Net Fixed Assets Total Assets $20 $280 Liabilities and Owner's Equity Current Liabilities Bank Loan Accounts Payable CMLTD Accrued Wages Total Current Liabilities Long Term Debt Total Liabilities Common Stock Retained Earnings Total Owner's Equity Total Liabilities and Owner's Equity