Question
Garlington Technologies Inc.'s 2019 financial statements are shown below: Income Statement for December 31, 2019 Sales$4,000,000Operating costs3,200,000EBIT$800,000Interest120,000Pre-tax earnings$680,000Taxes (25%)170,000Net income510,000Dividends$190,000 Pro Forma Balance Statement Dec
Garlington Technologies Inc.'s 2019 financial statements are shown below:
Income Statement for December 31, 2019
Sales$4,000,000Operating costs3,200,000EBIT$800,000Interest120,000Pre-tax earnings$680,000Taxes (25%)170,000Net income510,000Dividends$190,000
Pro Forma Balance Statement
Dec 31, 2020
Cash 184000(160000 * 1.15)
Receivables 414000(360000 * 1.15)
Inventories 828000(720000 * 1.15)
Total current assets 1426000
Fixed assets 4600000(4000000 * 1.15)
Total assets 6026000
Accounts payable 414000(360000 * 1.15)
Line of credit 293500(Balancing Figure)
Accruals 230000(200000 * 1.15)
Total current liabilities 937500
LT bonds 1000000
Common stock 1100000
Retained earnings 2988500
Total L&E
can tell if right?
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Fundamentals of Financial Management
Authors: Eugene F. Brigham, Joel F. Houston
13th edition
978-1285027371, 128502737X, 978-1133541141
