ed eal vill sh mo ima ed ne in r the abil for ne for nt fo tate ura meth - Data table (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Red Queen Restaurants Income Statement for the Year Just Ended Sales revenue $799,100 Less: Cost of goods sold 599,200 Gross profits $199,900 Less: Operating expenses 100,400 $99,500 39,800 Net profits before taxes Less: Taxes (rate=40%) Net profits after taxes Less: Cash dividends To retained earnings $59,700 19,300 $40,400 in order to copy the contents of the data table below into a spreadsheet.) Red Queen Restaurants Balance Sheet for the Year Just Ended Liabilities and Stockholders' Equity Accounts payable $32,700 $100,100 18,200 Taxes payable 20,000 150,500 Other current liabilities 4,200 100.500. $124.300. (Click on the icon here Assets Cash Marketable securities Accounts receivable Inventories Print Total current liabilities Done X ssi p Data table Less: Cost of goods sold Gross profits 599,200 $199,900 100,400 $99,500 Less: Operating expenses Net profits before taxes Less: Taxes (rate=40%) Net profits after taxes Less: Cash dividends 39,800 $59,700 19,300 To retained earnings $40,400 in order to copy the contents of the data table below into a spreadsheet.) Sheet for the Year Just Ended Liabilities and Stockholders' Equity Accounts payable $100,100 Taxes payable 20,000 Other current liabilities 4,200 Total current liabilities $124,300 Long-term debt $202,000 Common stock $149,900 Retained earnings $175,000 Total liabilities and equity $651,200 Done (Click on the icon here Assets Cash Marketable securities Accounts receivable Inventories Net fixed assets Total assets Red Queen Restaurants Balance $32,700 18,200 150,500 100,500 $301,900 349,300 $651,200 Total current assets Print I X ssib to p Integrative Pro forma statements Red Queen Restaurants wishes to prepare financial plans. Use the financial statements a financial data are also available for next year: (1) The firm has estimated that its sales will be $900,300. (2) The firm expects to pay $35,900 in cash dividends. (3) The firm wishes to maintain a minimum cash balance of $30,500. (4) Accounts receivable represent approximately 21% of annual sales. (5) The firm's ending inventory will change directly with changes in sales. (6) Red Queen will purchase new machine costing $42,800 and have total depreciation of $16,900. (7) Accounts payable will change directly in response to changes in sales. (8) Taxes payable will equal one-fourth of the tax liability on the pro forma income statement. (9) Marketable securities, other current liabilities, long-term debt, and common stock will remain unchanged. a. Prepare a pro forma income statement for next year, using the percent-of-sales method. b. Prepare a pro forma balance sheet for next year, using the judgmental approach. c. Analyze these statements, and discuss the resulting external financing required. (percent-of-sales method) Sales Less: Cost of goods sold Gross profits Less: Operating expenses Net profits before taxes Less: Taxes (rate= 40%) Net profits after taxes Less: Cash dividends To Retained earnings LA 57 S EA GA 59 SA 69 % % (Judgmental Method) Accounts payable Taxes payable Other current liabilities Total current liabilities Long-term debt Common stock Retained earnings External funds required Total liabilities and stockholders' equity c. Using the judgmental approach, the external funds requirement is $. (Round to the nearest dollar.) $ LA S 10 SA
