Franco$-$American Imports $-$ Pro$-$Forma Statements

Assumptions for $2024($all numbers in $(000$s$)$:

Sales are projected to increase by $20\%$ over $2023$

COGS includes $$1,000$ in fixed costs

Operating Expenses include $$250$ in fixed costs

The firm will pay cash dividends of $40\%$ of net profits after tax

Cash will double

Due to a large purchase, inventory turnover will decline to $3\mathrm{.}1x$

Marketable securities$,$ notes payable, ling$-$term debt and common stock will remain unchanged.

$\frac{A}{R}$ days and $\frac{A}{P}$ days are expected to remain the same as $2023$

Other current liabilities will change in direct response to the change in sales

A new computer system costing $$356$ will be purchased during the year

Total depreciation expense for the year will be $$110$

Assignment

a$)$ Prepare a pro$-$forma income statement for $2024$ using the fixed cost data given to improve the accuracy of the

b$)$ Prepare a pro$-$forma balance sheet as of December $31,2024,$ using the information given and the judgmental :

c$)$ Analyze these statements, and determine the resulting external