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Franco - American Imports - Pro - Forma Statements Franco - American Imports Franco - American Imports Income Statement Balance Sheet ( 0 0 0

Franco-American Imports - Pro-Forma Statements
Franco-American Imports Franco-American Imports
Income Statement Balance Sheet
(000s)(000s)
Actual Projected Actual Projected Actual Projected
202320242023202420232024
Sales 5,0006,000 Assets Liabilities & Equity
COGS 2,7503,750 Cash 200400 Accounts Payable 700
Marketable securities 275275 Taxes Payable 95
Gross Margin 2,2502,250 Accounts Receivable 625 Notes Payable 200
Inventories 500 Other current Liabilities 5
Operating Expenses 8501,100 Total current assets 1,600 Total Current Liabilities 1,000
Operating Profits 1,4001,150 Net Fixed Assets 1,400 Long-Term Debt 500
Interest Expense 200200 Financing Required
Profit Before Tax 1,200950 Total Assets 3,000 Common Stock 125
Tax @ 40%480380 Retained Earnings 1,375
Net profit after tax 720570
Total Liabilities & Equity 3,000
Memo: Cash Dividends 288
Assumptions for 2024(all numbers in (000s):
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 3.1X
Marketable securities, notes payable, ling-term debt and common stock will remain unchanged.
A/R days and 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

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