Financial Statements for Excellent Corporation

20X8 (Actual) and 20X9 (Pro Forma), in $millions

INCOME STATEMENT BALANCE SHEET

20X8 20X9 20X8 20X9

Net sales

$47,616 52,378 Cash & securities

$ 951 1,046

Cost of goods sold

40,718 44,790 Accounts receivable

5,666 6,233

Other expenses

5,171 5,688 Inventories

4,308 4,660

Depreciation expense

1,000 1,100

Net fixed assets

4,048

EBIT

727 800

Total assets

$ 14,973

Interest expense

215 215

Bank loan

$ 392 431

Earnings before tax

512 585

Accounts payable

7,491 8,161

Tax

154 176

Long-term debt

2,148 1,046

Net income

$ 359 409

Total liabilities

10,031

Dividends paid

90 102

Shareholders equity

4,942

Add. to retained

earnings

$ 269

Total liabilities & equity

$ 14,973

11.In the above financial statements, Excellent Corporation has prepared (incomplete) pro forma financial statements for 20X9, based on actual financial statements for 20X8. Excellent Corp. used the percent-of-sales method assuming a sales growth rate of 10% for 20X9. If capital expenditures are planned to be $1,615 in 20X9, then what would be the appropriate projection for net fixed assets in 20X9?$4,453

$4,563

$4,663

$5,663

12.Refer again to the pro forma financial statements above. If Excellent Corporation plans to issue $100 in new equity in 20X9, what should be the projection for shareholders equity for 20X9?$5,042

$5,144

$5,349

$5,451