| Cooper Company |
| Income Statement |
| For the year of 2015 |
| | | |
| Sales (100,000 x $10) | | $ 1,000,000 |
| Cost of goods sold | | |
| Direct material | $400,000 | |
| Direct labor | $200,000 | |
| Overhead | $100,000 | |
| Total cost of goods sold | | $ (700,000) |
| Gross profit | | $ 300,000 |
| Selling and administrative expense | | (224,000) |
| Income before taxes | | $ 76,000 |
| | | |
| | | |
| Cooper Company |
| Budgeted Income Statement |
| For the year of 2016 |
| | | |
| Sales (? x $10) | | $ 1,250,000 |
| Cost of goods sold | | |
| Direct material | $550,000 | |
| Direct labor | $275,000 | |
| Overhead | $137,500 | |
| Total cost of goods sold | | $ (962,500) |
| Gross profit | | $ 287,500 |
| Selling and administrative expense | | (252,000) |
| Income before taxes | | $ 35,500 |
| Heir Jordan Corporation | | |
| Pro Forma Balance Sheet | | |
| | | |
| Assets | | | | Liabilities and Stockholders' Equity | | | Projected sales in 2016 | $55,200 |
| | $ | | | | $ | | | |
| Current assets | | | | Current liabilities | | | | |
| Cash | | | | Accounts payable | | | | |
| Accounts receivable | | | | Notes payable | | | | |
| Inventory | | | | Total | | | | |
| Total | | | | Long-term debt | | | | |
| Fixed assets | | | | Stockholders' equity | | | | |
| Net plant and equipment | | | | Common stock and paid-in surplus | | | | |
| | | | | Retained earnings | | | | |
| | | | | Total | | | | |
| Total assets | | | | Total liabilities and stockholders' equity | | | | |
| | | | | | | | | |
| | | | | External financing needed | | | | |
| Heir Jordan Corporation | | | Heir Jordan Corporation |
| Income Statement | | | ProformaIncome Statement |
| For the year of 2015 | | | For the year of 2016 |
| | | | Percentage of Sales | | | |
| Sales | | $ 46,000 | | | Sales (projected) | $55,200 |
| Costs | | 37600 | | | Costs | |
| Taxable income | | 8400 | n.a. | | Taxable income | |
| Taxes (35%) | | 2940 | n.a. | | Taxes (35%) | |
| Net income | | 5460 | | | Net income | |
| Dividends | 2400 | | | | | |
| Addition to retained earnings | 3060 | | | | | |
this was all the information I was given for the project. 
Learning objective: Students will learn how to use the percent of sales method to create pro forma income statement and balance sheet. Please complete two parts of this project. The data are in this Excel file, Project 3dataxia,on flackboard. Again, please set formulae by referencing to the data in Excel spreadsheets. If you do not meet this requirement, you wilbe asked to re-work on the project. You can work with another student on this project or work alone. Please put your name(s) in your Excel spreadsheets. This project accounts for 4% of your overall grade. Due date: March 10th, 11:s9 pm on Blackboard Part 1 Please use Heir ordan's income statement and balance sheet to create pro forma financial statements for the upcoming year. A 20% growth rate in sales is projected. The procedure of the percent of sales method is listed in the paragraph below. Percent of sales method The first step in to express the balance of an accounting item in the income statement or balance sheet as a percent of current sales revenue. Then multiply that percentage by the projected sales revenue to arrive the projected amount for an accounting tem in the coming year. For example, Heir Jordan's costs were $37,600, which accounted for 8174%of current year's sales revenue ($37,600/$46,000 81,74%). The projected costs for the upcoming year will be 81.74%x$55,200 (the projected sales revenue) $45,120. Some of the accounting items expressed as a percentage of sales meaningless. This is because either the balance of the accounting item remains unchanged or its proportional change does not correspond to the percentage change in sales. We put a na." in the percentage column. We assume that Heir Jordan's dividend payout ratio remains unchanged for the coming year. Given thes 2,400 dividends and net income of $5.460 from the income statement, we know that its dividend payout ratio is cash dividend net income S2400/S5460 43956%. This implies that retention ratio is 56.044%, as the sum of the dividend payout and retention ratios Heir Jordan's equals to 100%. The textbook provides the formula for the projected retained earnings. The projected retained earnings The retained earnings from the past year projected net income -projected cash dividends to be paid So you will use the dividend payout ratio in the calculations. You will find that the pro forma balance sheet is imbalanced as total assets are not equal to total liabilities and stockholders' equity. if the projected total assets exceed projected total liabilities and stockholders' equity, this indicates that external financing are needed. Please compute the needed mount from external financing. Learning objective: Students will learn how to use the percent of sales method to create pro forma income statement and balance sheet. Please complete two parts of this project. The data are in this Excel file, Project 3dataxia,on flackboard. Again, please set formulae by referencing to the data in Excel spreadsheets. If you do not meet this requirement, you wilbe asked to re-work on the project. You can work with another student on this project or work alone. Please put your name(s) in your Excel spreadsheets. This project accounts for 4% of your overall grade. Due date: March 10th, 11:s9 pm on Blackboard Part 1 Please use Heir ordan's income statement and balance sheet to create pro forma financial statements for the upcoming year. A 20% growth rate in sales is projected. The procedure of the percent of sales method is listed in the paragraph below. Percent of sales method The first step in to express the balance of an accounting item in the income statement or balance sheet as a percent of current sales revenue. Then multiply that percentage by the projected sales revenue to arrive the projected amount for an accounting tem in the coming year. For example, Heir Jordan's costs were $37,600, which accounted for 8174%of current year's sales revenue ($37,600/$46,000 81,74%). The projected costs for the upcoming year will be 81.74%x$55,200 (the projected sales revenue) $45,120. Some of the accounting items expressed as a percentage of sales meaningless. This is because either the balance of the accounting item remains unchanged or its proportional change does not correspond to the percentage change in sales. We put a na." in the percentage column. We assume that Heir Jordan's dividend payout ratio remains unchanged for the coming year. Given thes 2,400 dividends and net income of $5.460 from the income statement, we know that its dividend payout ratio is cash dividend net income S2400/S5460 43956%. This implies that retention ratio is 56.044%, as the sum of the dividend payout and retention ratios Heir Jordan's equals to 100%. The textbook provides the formula for the projected retained earnings. The projected retained earnings The retained earnings from the past year projected net income -projected cash dividends to be paid So you will use the dividend payout ratio in the calculations. You will find that the pro forma balance sheet is imbalanced as total assets are not equal to total liabilities and stockholders' equity. if the projected total assets exceed projected total liabilities and stockholders' equity, this indicates that external financing are needed. Please compute the needed mount from external financing
