Integrative-Pro forma statements Provincial Imports, Inc., has assembled past (2019) financial statements (income statement and balance sheet and financial projections for use in preparing financial plans for the coming year (2020). Information related to financial projections for the year 2020 is as follows: (1) Projected sales are 56.005.000 (2) Cost of goods sold in 2019 includes $1,004,000 in fixed costs (3) Operating expense in 2019 includes $251,000 in fixed costs (4) Interest expense will remain unchanged 5) The firm will pay cash dividends amounting to 40% of net profits after (6) Cash and Inventories will double (7) Marketable securities, notes payable, long-term debt and common stock will remain unchanged. (8) Accounts receivable, accounts payable, and other current liabilities will change in direct response to the change in sales (9) A new computer system costing S360,000 will be purchased during the year. Total depreciation expense for the year will be $109,000 (10) The tax rate will remain at 40% . a. Prepare a pro forma income statement for the year ended December 31, 2020, using the faced cost data given to improve the accuracy of the percent-of-sales method Complete the pro forma income statement for the year ended December 31, 2020 below. (Round to the nearest dollar.) Pro Forma Income Statement Provincial Imports, Inc. for the Year Ended December 31, 2020 (percent-of-sales method) Sales Less: Cost of goods sold Enter any number in the edit fields and then click Check Answer 3 parts remaining Clear All Check Answer (2) Cost of goods sold in 2019 includes $1,004,000 in fixed costs (3) Operating expense in 2019 includes 5251,000 in fixed costs (4) Interest expense will remain unchanged. (5) The firm will pay cash dividends amounting to 40% of net profits after taxes. (6) Cash and inventories will double (7) Marketable securities notes payable long-term debt, and common stock will remain unchanged. (8) Accounts receivable accounts payable and other current liabilities will change in direct response to the change in sales. 9) A new computer system costing $360,000 will be purchased during the year. Total depreciation expense for the year will be $109,000 (10) The tax rate will remain at 4056 a. Prepare a pro forma income statement for the year ended December 31, 2020, using the ficed cost data given to improve the accuracy of the percent-of-sales method b. Prepare a pro forma balance sheet as of December 31, 2020, using the information given and the judgmental approach. Include a reconciliation of the retained C. Analyze these statements, and discuss the resulting external financing required. 2. Prepare a proforma income statement for the year ended December 31, 2020, using the fixed cost data given to improve the accuracy of the percent-of-sales method Complete the proforma income statement for the year ended December 31, 2020 below. (Round to the nearest dollar.) Pro Forma Income Statement Provincial Imports, Inc. for the Year Ended December 31, 2020 (percent-of-sales method) Sales Less: Cost of goods sold Enter any number in the edit fields and then click Check Answer 3 parts remaining Clear All Check Answer P4-21 (similar to Question Help Data Table heet and Integrative-Pro for financial projections to Information related to (1) Projected sales are 2) Cost of goods sold (3) Operating expense (4) Interest expense w (5) The firm will pay & (6) Cash and Inventor (7) Marketable securiti (8) Accounts receivabl (9) A new computer sy (10) The tax rate will ercent-of-sales a. Prepare a pro forme method Complete the proform (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Provincial Imports, Inc. Income Statement for the Year Ended December 31, 2019 Sales revenue $5,009,000 Less Cost of goods sold 2,754.000 Gross profits $2,255,000 Less Operating compenses 858 000 Operating profits $1,397,000 Less Interest expense 205.000 Net profits before taxes $1 192 000 Less Taxes (rate-40%) 476 800 Net profits after taxes $715,200 Less: Cash dividends 286.080 To retained earnings 5429,120 (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Provincial Imports, Inc. Balance Sheet December 31, 2019 Assets Liabilities and Stockholders' Equity Cash $206,000 Accounts payable $709 000 Marketable securities 233.000 Taxes payable 95.000 Pro for the Sales Less Cost of good Enter any number in Print Done 3 parts Answer remaining P4-21 (similar to Question Help X Data Table heet and Integrative-Pro for financial projections to Information related to (1) Projected sales are (2) Cost of goods sold (3) Operating expense (4) Interest expense w (5) The firm will pay CE (6) Cash and Inventor (7) Marketable securiti (8) Accounts receivabl (9) A new computer sy (10) The tax rate will a. Prepare a pro forme method Complete the proform Jercent-of-sales Sperry experie V. Operating profits $1,397 000 Less Interest expense 205,000 Net profits before taxes $1,192,000 Less Taxes (rate = 40%) 6.80 Net profits after taxes 5715 200 Less: Cash dividends 286,080 To retained earnings $429,120 (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Provincial Imports, Inc. Balance Sheet December 31, 2019 Assets Liabilities and Stockholders' Equity Cash $206,000 Accounts payable $709,000 Marketable securities 233.000 Taxes payable 95000 Accounts receivable 624 000 Notes payable 205,000 Inventories 502.000 Other current liabilities 4900 Total current assets 51,565.000 Total current liabilities 51,013,900 Net fixed assets 1,392.000 Long-term debt 505,100 Common stock 72.000 Retained earnings 1.366.000 Total assets S2,957,000 Total liabilities and equity $2,957.000 Pro for the Sales Less Cost of goo Enter any number in Print Done 3 parts Answer remaining (1) Projected sales are $6.005.000 (2) Cost of goods sold in 2019 includes $1,004000 in fixed costs (3) Operating expense in 2019 includes 5251,000 in fixed costs. (4) Interest expense will remain unchanged (5) The firm will pay cash dividends amounting to 40% of net profits after taxes. (6) Cash and inventories will double (7) Marketable securities notes payable, long-term debt, and common stock will remain unchanged. (8) Accounts receivable, accounts payable, and other current liabilities will change in direct response to the change in sales. (9) A new computer system costing S360,000 will be purchased during the year. Total depreciation expense for the year will be $109,000 (10) The tax rate will remain at 40% a. Prepare a pro forma income statement for the year ended December 31, 2020, using the fixed cost data given to improve the accuracy of the percent-of-sales method b. Prepare a pro forma balance sheet as of December 31, 2020, using the information given and the judgmental approach. Include a reconciliation of the retained eamings account Amalther statement and the nel finansinmind Provincial Imports, Inc. for the Year Ended December 31, 2020 (percent of sales method) Sales Less Cost of goods sold Gross profits $ Less: Operating expenses Operating profits $ Less Interest expense Enter any number in the edit fields and then click Check Answer $ 3 parts remaining Clear All Check Answer (1) Projected sales are $6.005.000 (2) Cost of goods sold in 2019 includes $1,004,000 in fixed costs (3) Operating expense in 2019 includes 5251,000 in fixed costs. (4) Interest expense will remain unchanged (5) The firm will pay cash dividends amounting to 40% of net profits after taxes. (6) Cash and inventories will double (7) Marketable securities notes payable, long-term debt, and common stock will remain unchanged. (8) Accounts receivable, accounts payable, and other current liabilities will change in direct response to the change in sales. (9) A new computer system costing $360,000 will be purchased during the year. Total depreciation expense for the year will be $109,000 (10) The tax rate will remain at 40% a. Prepare a pro forma income statement for the year ended December 31, 2020, using the fixed cost data given to improve the accuracy of the percent-of-sales method b. Prepare a pro forma balance sheet as of December 31, 2020, using the information given and the judgmental approach. Include a reconciliation of the retained eamings account -Gross protsmand and the Less Operating expenses Operating profits $ Less. Interest expense Net profits before taxes $ Less: Taxes (rate=40%) Net profits after taxes 5 Less: Cash dividends (40%) To Rutained earnings Enter any number in the edit fields and then click Check Answer 3 parts Clear All Check Answer remaining Integrative-Pro forma statements Provincial Imports, Inc., has assembled past (2019) financial statements (income statement and balance sheet and financial projections for use in preparing financial plans for the coming year (2020). Information related to financial projections for the year 2020 is as follows: (1) Projected sales are 56.005.000 (2) Cost of goods sold in 2019 includes $1,004,000 in fixed costs (3) Operating expense in 2019 includes $251,000 in fixed costs (4) Interest expense will remain unchanged 5) The firm will pay cash dividends amounting to 40% of net profits after (6) Cash and Inventories will double (7) Marketable securities, notes payable, long-term debt and common stock will remain unchanged. (8) Accounts receivable, accounts payable, and other current liabilities will change in direct response to the change in sales (9) A new computer system costing S360,000 will be purchased during the year. Total depreciation expense for the year will be $109,000 (10) The tax rate will remain at 40% . a. Prepare a pro forma income statement for the year ended December 31, 2020, using the faced cost data given to improve the accuracy of the percent-of-sales method Complete the pro forma income statement for the year ended December 31, 2020 below. (Round to the nearest dollar.) Pro Forma Income Statement Provincial Imports, Inc. for the Year Ended December 31, 2020 (percent-of-sales method) Sales Less: Cost of goods sold Enter any number in the edit fields and then click Check Answer 3 parts remaining Clear All Check Answer (2) Cost of goods sold in 2019 includes $1,004,000 in fixed costs (3) Operating expense in 2019 includes 5251,000 in fixed costs (4) Interest expense will remain unchanged. (5) The firm will pay cash dividends amounting to 40% of net profits after taxes. (6) Cash and inventories will double (7) Marketable securities notes payable long-term debt, and common stock will remain unchanged. (8) Accounts receivable accounts payable and other current liabilities will change in direct response to the change in sales. 9) A new computer system costing $360,000 will be purchased during the year. Total depreciation expense for the year will be $109,000 (10) The tax rate will remain at 4056 a. Prepare a pro forma income statement for the year ended December 31, 2020, using the ficed cost data given to improve the accuracy of the percent-of-sales method b. Prepare a pro forma balance sheet as of December 31, 2020, using the information given and the judgmental approach. Include a reconciliation of the retained C. Analyze these statements, and discuss the resulting external financing required. 2. Prepare a proforma income statement for the year ended December 31, 2020, using the fixed cost data given to improve the accuracy of the percent-of-sales method Complete the proforma income statement for the year ended December 31, 2020 below. (Round to the nearest dollar.) Pro Forma Income Statement Provincial Imports, Inc. for the Year Ended December 31, 2020 (percent-of-sales method) Sales Less: Cost of goods sold Enter any number in the edit fields and then click Check Answer 3 parts remaining Clear All Check Answer P4-21 (similar to Question Help Data Table heet and Integrative-Pro for financial projections to Information related to (1) Projected sales are 2) Cost of goods sold (3) Operating expense (4) Interest expense w (5) The firm will pay & (6) Cash and Inventor (7) Marketable securiti (8) Accounts receivabl (9) A new computer sy (10) The tax rate will ercent-of-sales a. Prepare a pro forme method Complete the proform (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Provincial Imports, Inc. Income Statement for the Year Ended December 31, 2019 Sales revenue $5,009,000 Less Cost of goods sold 2,754.000 Gross profits $2,255,000 Less Operating compenses 858 000 Operating profits $1,397,000 Less Interest expense 205.000 Net profits before taxes $1 192 000 Less Taxes (rate-40%) 476 800 Net profits after taxes $715,200 Less: Cash dividends 286.080 To retained earnings 5429,120 (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Provincial Imports, Inc. Balance Sheet December 31, 2019 Assets Liabilities and Stockholders' Equity Cash $206,000 Accounts payable $709 000 Marketable securities 233.000 Taxes payable 95.000 Pro for the Sales Less Cost of good Enter any number in Print Done 3 parts Answer remaining P4-21 (similar to Question Help X Data Table heet and Integrative-Pro for financial projections to Information related to (1) Projected sales are (2) Cost of goods sold (3) Operating expense (4) Interest expense w (5) The firm will pay CE (6) Cash and Inventor (7) Marketable securiti (8) Accounts receivabl (9) A new computer sy (10) The tax rate will a. Prepare a pro forme method Complete the proform Jercent-of-sales Sperry experie V. Operating profits $1,397 000 Less Interest expense 205,000 Net profits before taxes $1,192,000 Less Taxes (rate = 40%) 6.80 Net profits after taxes 5715 200 Less: Cash dividends 286,080 To retained earnings $429,120 (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Provincial Imports, Inc. Balance Sheet December 31, 2019 Assets Liabilities and Stockholders' Equity Cash $206,000 Accounts payable $709,000 Marketable securities 233.000 Taxes payable 95000 Accounts receivable 624 000 Notes payable 205,000 Inventories 502.000 Other current liabilities 4900 Total current assets 51,565.000 Total current liabilities 51,013,900 Net fixed assets 1,392.000 Long-term debt 505,100 Common stock 72.000 Retained earnings 1.366.000 Total assets S2,957,000 Total liabilities and equity $2,957.000 Pro for the Sales Less Cost of goo Enter any number in Print Done 3 parts Answer remaining (1) Projected sales are $6.005.000 (2) Cost of goods sold in 2019 includes $1,004000 in fixed costs (3) Operating expense in 2019 includes 5251,000 in fixed costs. (4) Interest expense will remain unchanged (5) The firm will pay cash dividends amounting to 40% of net profits after taxes. (6) Cash and inventories will double (7) Marketable securities notes payable, long-term debt, and common stock will remain unchanged. (8) Accounts receivable, accounts payable, and other current liabilities will change in direct response to the change in sales. (9) A new computer system costing S360,000 will be purchased during the year. Total depreciation expense for the year will be $109,000 (10) The tax rate will remain at 40% a. Prepare a pro forma income statement for the year ended December 31, 2020, using the fixed cost data given to improve the accuracy of the percent-of-sales method b. Prepare a pro forma balance sheet as of December 31, 2020, using the information given and the judgmental approach. Include a reconciliation of the retained eamings account Amalther statement and the nel finansinmind Provincial Imports, Inc. for the Year Ended December 31, 2020 (percent of sales method) Sales Less Cost of goods sold Gross profits $ Less: Operating expenses Operating profits $ Less Interest expense Enter any number in the edit fields and then click Check Answer $ 3 parts remaining Clear All Check Answer (1) Projected sales are $6.005.000 (2) Cost of goods sold in 2019 includes $1,004,000 in fixed costs (3) Operating expense in 2019 includes 5251,000 in fixed costs. (4) Interest expense will remain unchanged (5) The firm will pay cash dividends amounting to 40% of net profits after taxes. (6) Cash and inventories will double (7) Marketable securities notes payable, long-term debt, and common stock will remain unchanged. (8) Accounts receivable, accounts payable, and other current liabilities will change in direct response to the change in sales. (9) A new computer system costing $360,000 will be purchased during the year. Total depreciation expense for the year will be $109,000 (10) The tax rate will remain at 40% a. Prepare a pro forma income statement for the year ended December 31, 2020, using the fixed cost data given to improve the accuracy of the percent-of-sales method b. Prepare a pro forma balance sheet as of December 31, 2020, using the information given and the judgmental approach. Include a reconciliation of the retained eamings account -Gross protsmand and the Less Operating expenses Operating profits $ Less. Interest expense Net profits before taxes $ Less: Taxes (rate=40%) Net profits after taxes 5 Less: Cash dividends (40%) To Rutained earnings Enter any number in the edit fields and then click Check Answer 3 parts Clear All Check Answer remaining