Explain please
adivg i eding 2 Question L. Fashion Trends, Inc., a regional fashion apparel retailer, wants to prepare a 2018 Pro Forma Income Statement and a 2013 Balance Sheet using the following 2017 and 2016 data: Fashion Trends, Inc. Balance Sheet For the Period Eaded Dec. 31, 2017 Fathion Treads, Inc. Balance Sheet As of Dec. 31, 2017 862,000 678,000 1,006,000 730,000 578,000 600,000 2,446,0002,008,000 9,338,000 8,644,000 590,000 4,112,000 4,748000 4,532,000 194,000 6540,000 6,148,000 5,134,000 Casb and Equivalents 4,176,000 3,422,000 Accounts Receivable Cost of Goods Sold Gross Profat S,G&A Expenses Fixed Expenses Depreciation Expense 478000 EBIT Interest Expense Earnings Before Taxes 650,000 1,972,000 1,712,000 Inventory 588,000 590,000 Total Current Asset 70,000 70,000 Plant&Equipment 446,000 Accummulated Depreciation 836,000 606,000 Net Fxed Assets 186,000 182,000 Total Assets 424,000 Liabilities and Owners'E 64,000 540,000 158,000 198,000 318,000 228,000 1,240,000 966,000 ,046,000 1,934,000 3,286,000 2,900,000 1,638,000 1,616,000 2,270,000 2,024,000 540,000 195,000 127,200 Accounts Payable Net Incomme 455,000296,00Short-term Notes Payable Accrued Expenses Total Current Liabilities Long-term Debt Total Liabilities Common Stock Retained Eamings Total Shareholder's Equity Total Liabilines and Owners'Euity.194,000 6,540,000 The firm has forecasted sales of $7,100,000 and a tax rate of 4 S,G&A expense in 2018 are expected to be the average of their two-year proportion of sales. On the balance sheet, accounts receivable, inventory, accounts payable, and accrued expenses are expected to be 0% for 201 s. Cost of goods sold and at the two-year average of the proportion of these items in relation to sales. The firm has planned an investment of S500,000 in fixed assets in 201S, with an estimated life of 10 years and no salvage value. These fixed assets will be depreciated using the straight line depreciation method. All other financial statement items are expected to remain constant in 2018 adivg i eding 2 Question L. Fashion Trends, Inc., a regional fashion apparel retailer, wants to prepare a 2018 Pro Forma Income Statement and a 2013 Balance Sheet using the following 2017 and 2016 data: Fashion Trends, Inc. Balance Sheet For the Period Eaded Dec. 31, 2017 Fathion Treads, Inc. Balance Sheet As of Dec. 31, 2017 862,000 678,000 1,006,000 730,000 578,000 600,000 2,446,0002,008,000 9,338,000 8,644,000 590,000 4,112,000 4,748000 4,532,000 194,000 6540,000 6,148,000 5,134,000 Casb and Equivalents 4,176,000 3,422,000 Accounts Receivable Cost of Goods Sold Gross Profat S,G&A Expenses Fixed Expenses Depreciation Expense 478000 EBIT Interest Expense Earnings Before Taxes 650,000 1,972,000 1,712,000 Inventory 588,000 590,000 Total Current Asset 70,000 70,000 Plant&Equipment 446,000 Accummulated Depreciation 836,000 606,000 Net Fxed Assets 186,000 182,000 Total Assets 424,000 Liabilities and Owners'E 64,000 540,000 158,000 198,000 318,000 228,000 1,240,000 966,000 ,046,000 1,934,000 3,286,000 2,900,000 1,638,000 1,616,000 2,270,000 2,024,000 540,000 195,000 127,200 Accounts Payable Net Incomme 455,000296,00Short-term Notes Payable Accrued Expenses Total Current Liabilities Long-term Debt Total Liabilities Common Stock Retained Eamings Total Shareholder's Equity Total Liabilines and Owners'Euity.194,000 6,540,000 The firm has forecasted sales of $7,100,000 and a tax rate of 4 S,G&A expense in 2018 are expected to be the average of their two-year proportion of sales. On the balance sheet, accounts receivable, inventory, accounts payable, and accrued expenses are expected to be 0% for 201 s. Cost of goods sold and at the two-year average of the proportion of these items in relation to sales. The firm has planned an investment of S500,000 in fixed assets in 201S, with an estimated life of 10 years and no salvage value. These fixed assets will be depreciated using the straight line depreciation method. All other financial statement items are expected to remain constant in 2018
