Homework: Chap 4 Question 4, P4-20 (simila... Part 1 of 4 HW Score: 50.2%, 2.01 of 4 points Points: 0 of 1 Save Data Table (Click on the icon located on the top-right comer of the data tables below in order to copy its contents into a spreadsheet.) meyr uureTIV TVEIR OWNERVII IV W DO INCLUID WIDE w piepala HIITOR PION. WODNIC IIIIIII available: (1) The firm has estimated that its sales for 2020 will be $900,200. (2) The firm expects to pay S34,300 in cash dividends in 2020. (3) The firm wishes to maintain a minimum cash balance of $31,800. (4) Accounts receivable represent approximately 19% of annual sales. (5) The firm's ending inventory will change directly with changes in sales in 2020. (6) A new machine costing $42,700 will be purchased in 2020. Total depreciation for 2020 will be $16.500. (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. 19) 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. G. Analyze these statements, and discuss the resulting exfomal firiancing required. Complete the pro forma Income statement for the year ended December 31, 2020 below: (Round to the nearest dolls Pro Forma Income Statement Red Queen Restaurants for the Year Ended December 31, 2020 (percent-of-sales method) $ Red Queen Restaurants Income Statement for the Year Ended December 31, 2019 Sales revenue $800,400 Less: Cost of goods sold 600,000 Gross profits S200,400 Less: Operating expenses 100,500 Net profits before taxes $99,900 Less: Taxes (rate = 21%) 20,979 Net profits after taxes $78,921 Less: Cash dividends 19,900 To retained earnings $59,021 Red Queen Restaurants Balance Sheet December 31, 2019 Assets Llabilities and Stockholders' Equity Cash $32,000 Accounts payable S100,600 Marketable securities 17,000 Taxes payable 20,700 Accounts receivable 149, 100 Other current liabilities 5,600 Inventories 100,200 Tolal current liabilities $126,900 Total current assets $298,300 Long-term debt S197,000 Net fixed assets 350,600 Common stock S150,000 Retained eamings $175,000 Total assets $648,900 Total liabilities and equity S648,900 Sales $ 1% $ $ % Less: Cost of goods sold Gross profits Less: Operating expenses Net profits before taxes Less: Taxes (rate - 21%) Net profits after taxes $ $ $ Less: Cash dividends $ To Retained earings $ Print Done Help Me Solve This View an Example Get More Help Clear All Check