Complete the Liability to Shareholders

Pro-forma financial statements all 17 Create pro forma financial statements from the information provided below Income Statement Year 2 Year 1 Sales revenues increase 3.0% Revenues Cost of Gross profit 17,00017,510 9,200 7.800 4790 1,700 17,160 8,580 8,580 4,790 1,840 1,950 53 1.897 664 100.00%) Gross margin is 52% 52% 8,405 9,105 4,838 1.920 2,347 61 2.286 800 1.486 SG&A increases 1.0% 2200 of PP&E is purchased on January 1 New PP&E is depreciated over 10 years Inventory grows in line with COGS sold Added Depreciation 220 that all other asset accounts grow in line with sales (3.0%) nts Payable grow in line with COGS d and deferred income taxes grows in line with taxes. rating Profit Income before taxes Taxes @35% Net Income 155 1.155 404 751 Long-term debt declines by $200 Unless otherwise stated, liability accounts grow in line with sales (3.0%) Treasury Stock purchases equal $300 Average interest cost of all interest bearing debt is 1.4% Dividend payout ratio is 24% Tax rate is 35% Funding requirements should be financed with short-term debt 225 357 308 Line 40 and 45 Addition to retained earn 526 1,129 925 Liabilities & Shareholders' Equit Year 0 3,148 Year 1 2,876 Year 2 2,936 Accounts payable Loans & notes pavable lu Accrued income taxes Total Current Liabilities Pro-forma financial statements all 17 Create pro forma financial statements from the information provided below Income Statement Year 2 Year 1 Sales revenues increase 3.0% Revenues Cost of Gross profit 17,00017,510 9,200 7.800 4790 1,700 17,160 8,580 8,580 4,790 1,840 1,950 53 1.897 664 100.00%) Gross margin is 52% 52% 8,405 9,105 4,838 1.920 2,347 61 2.286 800 1.486 SG&A increases 1.0% 2200 of PP&E is purchased on January 1 New PP&E is depreciated over 10 years Inventory grows in line with COGS sold Added Depreciation 220 that all other asset accounts grow in line with sales (3.0%) nts Payable grow in line with COGS d and deferred income taxes grows in line with taxes. rating Profit Income before taxes Taxes @35% Net Income 155 1.155 404 751 Long-term debt declines by $200 Unless otherwise stated, liability accounts grow in line with sales (3.0%) Treasury Stock purchases equal $300 Average interest cost of all interest bearing debt is 1.4% Dividend payout ratio is 24% Tax rate is 35% Funding requirements should be financed with short-term debt 225 357 308 Line 40 and 45 Addition to retained earn 526 1,129 925 Liabilities & Shareholders' Equit Year 0 3,148 Year 1 2,876 Year 2 2,936 Accounts payable Loans & notes pavable lu Accrued income taxes Total Current Liabilities