I have to create income statements and balance sheets for 2016 using the 2015 data and using the special instructions in the textbook.
White & Pinkman Corporatlo Assets ! Balance Sheet Dec . 31, 2015 Current Assets" Answers Cash ST- 1. IFCC in 20 Marketable Securities $ 9,000, 000 Accounts Receivable ( Net ) 8,000 , 000 Inventory 1,000, 000 Prepaid Expenses 20, 000, 000 ST - 2 . If Init Total Current Assets 1, 000 , 000 $ 39, 000, 000 of it to Fixed Assets :` 50 per Plant and Equipment ( Gross ) 11,000 , 000 to the 20, 000 , 000 retaine Less Accumulated Depreciation ( 9, 000 , 0000 ) forma Plant and Equipment ( Net ) Total Assets 11, 000 , 000 $ 50, 000, 000 Liabilities and Equity :" Current Liabilities :" ST - 3. Globex Accounts Payable $735, 00 Notes Payable $ 12, 000 , 000 5, 000, 000 must art Accrued Expenses support Total Current Liabilities 3, 000 , 000 this final Bonds Payable ( 5% , due 2025 ) $ 20, 000 , 000 issue , or Total Liabilities 20, 000 , 000 ST- 4 . Common Stock ( 1 mil . shares , $ 1 par ) $ 40, 000, 000 Capital in Excess of Par 1 , 000 , 000 Retained Earnings 4 , 000 , 000 Total Equity 5, 000, 000 10 , 000 , 000 For Esoter Total Liabilities and Equity statements $ 50, 000, 000 2 . 2. Calculate White & Pinkman's additional funds needed , or excess financing . If additional funds are needed , add them to long-term debt to bring the balance sheet into balance . If excess financing is available , increase common stock dividends paid ( and , therefore , decrease 2016 retained earnings ) until the balance sheet is in balance . b. Calculate White & Pinkman's current ratio for the end of 2015 and 2016 . C . Calculate White & Pinkman's total asset turnover and inventory turnover ratios for 2016 . d . Calculate White & Pinkman's total debt to total assets ratio for 2015 and 2016. Assume there has been no additional long-term debt issued in 2016 . . . Calculate White & Pinkman's net profit margin , return on assets , and return on equity ratios for 2015 and 2016 . 3. Comment on White & Pinkman's liquidity , asset productivity , debt management , and profitability based on the results of your ratio analysis in 26 through 20 . 4 . What recommendations would you provide to management based on your forecast and analysis ?cat for 2016. Sales will know 1:40 percent to $5 percent Final percentage of sales For more , see Te 2018 Compute the following ratios for 2015 and 2016. Spreadsheet Templates 2015 2016 for Microsoft Excel .` Current Ratio Debt to Assets Ratio Sales to Assets Ratio Net Profit Margin Return on Assets 15 follows . Return on Equity Comment on any trends revealed by your ratio analysis . Challenge PT 6 -10 . 1 . Develop a pro forma income statement and balance sheet for the White & Pinkman Corporation . The company's 2015 financial statements are shown below . Base your ILITY forecast on the financial statements and the following assumptions :` 5 4, 400 . Sales growth is predicted to be 20 percent in 2016 . . Cost of goods sold , selling and administrative expense , all current assets , accounts 4, 000 payable , and accrued expenses will remain the same percentage of sales as in 2015 5, 000 . Depreciation expense , interest expense , gross plant and equipment , notes payable . long-term debt , and equity accounts other than retained earnings in 2016 will be the 13, 400 6, 000 same as in 2015 . 19, 000 . The company's tax rate in 2016 will be 40 percent . . The same dollar amount of dividends will be paid to common stockholders in 2016 $ 38. 400 as in 2015 . Bad debt allowance in 2016 will be the same percentage of accounts receivable as as growth rate is expected to it was in 2015 . st several years the earnings White & Pinkman Corporation -ted to remain the same over Income Statement for 2015 I it plans to maintain the $ at . 10 , 000 , 000 Sales 4 , 000 , 000 OF December 31 , 2016 . Cost of Goods Sold 6, 000 , 000 ets and bonds payable ) Gross Profit 800, 000 ent Liabilities will remain Selling and Administrative Expenses 2, 000 , 000 ge to common equity is for Depreciation Expense Earnings before Interest and Taxes ( EBIT ) 3 , 200, 000 1 , 350 , 000 HOW . Interest Expense Earnings before Taxes ( EBT ) 1 , 850 , 000 2016 740 , 000 Taxes ( 40% )| 1 , 1 10, 000 220 Net Income ( NI ) 1. 11 110 Earnings per Share ( EPS ) ( 1 million shares ) 400, 000 80 Common Stock Dividends Paid Addition to Retained Earnings 710 , 000 \8 1 8 8 8|8| $ 8 8 3:32WHITE & PINK Historical and Projected Income Statements Historical SQUAWN 2015 $10,000,000 r the W Sales $4.000.000 Cost of goods Sold 6 $6,000,000 10 Gross Profit $800,000 15 final 11 Selling & Admin. Expenses 12 Depreciation Expense $2.000.000 13 Operating Income (EBIT) $3,200,000 14 Interest Expenses $1.350.000 15 Earnings Before Tax (EBT) $1,850,000 16 Income Tax (40%) $740.000 17 Net Income (NI ) $1 110.000 18 19 Common Stock Dividends paid $400,000 20 Addition to Retained earnings $710,000 21 Earnings per Share (1,000,000 shares) $1.11 About this 22 23 WHITE & PINKMAN CORPORATION 24 Historical and Projected Balance Sheets Ask a hor 26 25 Historical 27 Dec 31. 2015 192 tutor 28 ASSETS 29 Current Assets: 30 Cash $9,000,000 31 Marketable Securities $8,000,000 32 Accounts Receivable (gross) $1,200,000 33 Less: Allowance for Bad Debts $200.000 34 Accounts Receivable (Net) $1,000,000 35 Inventory $20,000,000 our). 36 Prepaid Expenses 000 000 1$ 37 Total Current Assets 38 Plant and Equipment (gross) $39,000,000 39 Less: Accumulated Depreciation $20,000,000 S 40 Plant and Equipment (net) $9.000.000 41 TOTAL ASSETS $11.000.000 42 $50 000.0.00 43 |LIABILITIES AND EQUITY nswer. Get An 46 45 Notes Payable 50 Total Liabilities 47 56 58 change in sales = new sales/old sales 52 Capital in Excess of Par 48 Total Current Liabilities 51 Common Stock (1,000, 000 shares, $1 par) 55 TOTAL LIABILITIES AND EQUITY 54 Total Equity Accrued Expenses 44 Current Liabilities: 53 Retained Earnings 49 L-T Debt (Bonds Payable, 5%, due 2015) 57 Accounts Payable $1,000,000 $40,000,000 $5,000,000 $12,000,000 $5.000.000 $3 000.000 $20,000,000 $50.000 0.00 $4,000,000 $20.000.00Q $10.000.000 Sa Ne Sa
