?I am currently working on a case study and am trying to incorporate multiple different expenditures into both the income statement and balance sheet but I am not sure how to. Attached is a picture of the statements. These are the statements provided by the case study and must be altered. As a large company who is expanding, we wanted to release an IPO by hiring an underwriting firm. The audit will cost $250,000 and we will pay 6% of gross proceeds to the underwriting company. The Federal underwrites the shares for $13.50 per share, with a total of 2,000,000 shares outstanding. The Metropolitan Bank will be financing the expansion until the public stock offering at a rate of the prime interest rate of 5.75% plus 2.5%. Must find the new net income.

Pro Forma Income Statements for The Year Ending October 31, 1994 Pro Forma Balance Sheets As At October 31,1994 000's (except ratios) Alternative 3 audit cost of $250,000 pay underwriting fee of 6% of gross proceeds underwrite shares at $13.50 at 2M shares 000's (except revenue per visit 46,618 22,713 23,904 4,190 Current Assets 583 Metropolitan Bank to finance until polic stock off eringat rate of Prime Prime 5.75% Operating Exepnses 2.5% Accounts Receivable 7,293 11,092 Earmings from Resort Operations Inventory-Equipment for Sale Total Current Assets Property, Buidlings, Equipment, Net Phase 2 Expansion, Net 46,600 24,167 9,300 29,520 120,679 466 EBITDA 17,797 Deferred Development Costs Total Assets 4,133 500 Amortization of Goodwil iabilities: Current Liabilities 7,534 3,538 3,143 3,000 17,215 EBIT 13,164 4,188 8,976 Accounts Payable Deferred Revenue Operating Loan Current Portion of Long-Term Debt EBT Total Current Liabilities Tax @ 40% Long-Term Debt Earnings After Taxes Total Uabilities 3,305- 1,616 Deferred Taxes INCR/(DECR) In Retained Earnings 770 Retained Earning Paid-In Capital 20,104 18,600 8,704 Total equity New Financing Total Liabilities &Equity Net Income EPS: Weighted Average of Comman Shares Outstanding 120,679