HIILEYI alive RIU IUITA SLALCITICIILS neu Queen Restaul al ILS WISTES w prepare il lancial plans. Use le lll lancial Statements and Le vuel TOITTALION1 Provideu Tiere 10 piepale Le lancial plants. The following financial data are also available: (1) The firm has estimated that its sales for 2020 will be $899,300. (2) The firm expects to pay $34,800 in cash dividends in 2020. (3) The firm wishes to maintain a minimum cash balance of $30,400. (4) Accounts receivable represent approximately 22% of annual sales. (5) The firm's ending inventory will change directly with changes in sales in 2020. (6) A new machine costing $42,300 will be purchased in 2020. Total depreciation for 2020 will be $16,800. (7) Accounts payable will change directly in response to changes in sales in 2020. (8) Taxes payable will equal one-fourth of the tax liability on the pro forma income statement. (9) Marketable securities, other current liabilities, long-term debt, and common stock will remain unchanged. a. Prepare a pro forma income statement for the year ended December 31, 2020, using the percent-of-sales method. b. Prepare a pro forma balance sheet dated December 31, 2020, using the judgmental approach. c. Analyze these statements, and discuss the resulting external financing required. a. Prepare a pro forma income statement for the year ended December 31, 2020, using the percent-of-sales method. Complete the pro forma income statement for the year ended December 31, 2020 below: (Round to the nearest dollar. Round the percentage of sales to four decimal places. 74.9219 % Pro Forma Income Statement Red Queen Restaurants for the Year Ended December 31, 2020 (percent-of-sales method) Sales 899,300 Less: Cost of goods sold 673,772 Gross profits 225,528 Less: Operating expenses 112,426 Net profits before taxes 113,102 Less: Taxes (rate = 21%) 23,751 Net profits after taxes 89,351 Less: Cash dividends 34,800 To Retained earnings 54,551 12.5016 % b. Prepare a pro forma balance sheet dated December 31, 2020. usina the judamental approach Enter any number in the edit fields and then click Check Answer. b. Prepare a pro forma balance sheet dated December 31, 2020, using the judgmental approach. Complete assets part of the pro forma balance sheet as of December 31, 2020 below: (Round to the nearest dollar.) Pro Forma Balance Sheet Red Queen Restaurants for the Year Ended December 31, 2020 (Judgmental Method) Cash Marketable securities Accounts receivable Inventories Total current assets Net fixed assets Total assets Enter any number in the edit fields and then click Check Answer. A Data Table (Click on the icon located on the top-right corner of the data tables below in order to copy its contents into a spreadsheet.) Red Queen Restaurants Income Statement for the Year Ended December 31, 2019 Sales revenue $799,900 Less: Cost of goods sold 599,300 Gross profits $200,600 Less: Operating expenses 100,000 Net profits before taxes $100,600 Less: Taxes (rate=21%) 21,126 Net profits after taxes $79,474 Less: Cash dividends 19,500 To retained earnings $59,974 Red Queen Restaurants Balance Sheet December 31, 2019 Assets Liabilities and Stockholders' Equity Cash $32,900 Accounts payable $99,100 Marketable securities 17,200 Taxes payable 20,800 Accounts receivable 149,600 Other current liabilities 4,200 Inventories 99,700 Total current liabilities $124,100 Total current assets $299,400 Long-term debt $201,700 Net fixed assets 350,400 Common stock $149,000 Retained earnings $175,000 Total assets $649,800 Total liabilities and equity $649,800 HIILEYI alive RIU IUITA SLALCITICIILS neu Queen Restaul al ILS WISTES w prepare il lancial plans. Use le lll lancial Statements and Le vuel TOITTALION1 Provideu Tiere 10 piepale Le lancial plants. The following financial data are also available: (1) The firm has estimated that its sales for 2020 will be $899,300. (2) The firm expects to pay $34,800 in cash dividends in 2020. (3) The firm wishes to maintain a minimum cash balance of $30,400. (4) Accounts receivable represent approximately 22% of annual sales. (5) The firm's ending inventory will change directly with changes in sales in 2020. (6) A new machine costing $42,300 will be purchased in 2020. Total depreciation for 2020 will be $16,800. (7) Accounts payable will change directly in response to changes in sales in 2020. (8) Taxes payable will equal one-fourth of the tax liability on the pro forma income statement. (9) Marketable securities, other current liabilities, long-term debt, and common stock will remain unchanged. a. Prepare a pro forma income statement for the year ended December 31, 2020, using the percent-of-sales method. b. Prepare a pro forma balance sheet dated December 31, 2020, using the judgmental approach. c. Analyze these statements, and discuss the resulting external financing required. a. Prepare a pro forma income statement for the year ended December 31, 2020, using the percent-of-sales method. Complete the pro forma income statement for the year ended December 31, 2020 below: (Round to the nearest dollar. Round the percentage of sales to four decimal places. 74.9219 % Pro Forma Income Statement Red Queen Restaurants for the Year Ended December 31, 2020 (percent-of-sales method) Sales 899,300 Less: Cost of goods sold 673,772 Gross profits 225,528 Less: Operating expenses 112,426 Net profits before taxes 113,102 Less: Taxes (rate = 21%) 23,751 Net profits after taxes 89,351 Less: Cash dividends 34,800 To Retained earnings 54,551 12.5016 % b. Prepare a pro forma balance sheet dated December 31, 2020. usina the judamental approach Enter any number in the edit fields and then click Check Answer. b. Prepare a pro forma balance sheet dated December 31, 2020, using the judgmental approach. Complete assets part of the pro forma balance sheet as of December 31, 2020 below: (Round to the nearest dollar.) Pro Forma Balance Sheet Red Queen Restaurants for the Year Ended December 31, 2020 (Judgmental Method) Cash Marketable securities Accounts receivable Inventories Total current assets Net fixed assets Total assets Enter any number in the edit fields and then click Check Answer. A Data Table (Click on the icon located on the top-right corner of the data tables below in order to copy its contents into a spreadsheet.) Red Queen Restaurants Income Statement for the Year Ended December 31, 2019 Sales revenue $799,900 Less: Cost of goods sold 599,300 Gross profits $200,600 Less: Operating expenses 100,000 Net profits before taxes $100,600 Less: Taxes (rate=21%) 21,126 Net profits after taxes $79,474 Less: Cash dividends 19,500 To retained earnings $59,974 Red Queen Restaurants Balance Sheet December 31, 2019 Assets Liabilities and Stockholders' Equity Cash $32,900 Accounts payable $99,100 Marketable securities 17,200 Taxes payable 20,800 Accounts receivable 149,600 Other current liabilities 4,200 Inventories 99,700 Total current liabilities $124,100 Total current assets $299,400 Long-term debt $201,700 Net fixed assets 350,400 Common stock $149,000 Retained earnings $175,000 Total assets $649,800 Total liabilities and equity $649,800