integrative-Pro forma statements Provincial imports, Inc., nas assembled last years Tinancial statements (income statement and balance sheet anonnancial projectons for use in preparing financial plans for the coming year. Information related to financial projections for next year is as follows: (1) Projected sales are $5.995.000. 2) Cost of goods sold last year includes $994.000 in fixed costs. (3) Operating expense last year includes $253.000 in fixed costs. 4) Interest expense will remain unchanged. - X Data Table 5) The firm will pay cash dividends amounting to 35% of net profits after taxes. (8) Cash and inventories will double 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 i 9) A new computer system costing $350,000 will be purchased during the year. Total depreciation expense for the y (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) (10) The tax rate will remain at 40%. a. Prepare a pro forma income statement for next year, using the fixed cost data given to improve the accuracy of the Provincial Imports, Inc. Income Statement b. Prepare a pro forma balance sheet for next year, using the information given and the judgmental approach. Includ for the Year Just Ended c. Analyze these statements, and discuss the resulting external financing required Sales revenue $5,005,000 2.752.000 Less Cost of goods sold a. Prepare a pro forma income statement for next year, using the fixed cost data given to improve the accuracy of the Gross profits $2,253,000 Complete the pro forma income statement for next year below: (Round to the nearest dollar.) Less Operating expenses 855,000 Operating profits $1,398,000 Pro Forma Income Statement Less: Interest expense 190,000 Net profits before taxes $1,208,000 Provincial Imports, Inc Less Taxes (rate = 40%) 483,200 $724,800 for Next Year Net profits after taxes Less Cash dividends 253 880 (percent-of-sales method) To retained earnings $471,120 Sales $ (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Less: Cost of goods sold Provincial Imports, Inc. Balance Sheet Gross profits $ for the Year Just Ended Assets Liabilities and Stockholders' Equity Less: Operating expenses Cash $198,000 Accounts payable $897,000 Operating profits $ Marketable securities 219,000 Taxes payable 95,000 Accounts receivable 618,000 Notes payable 206,000 Less: Interest expense Inventories 506,000 Other current liabilities 5.400 Net profits before taxes $1 Total current assets $1,541,000 Total current liabilities $1,003,400 Net fixed assets 1.400.000 Long-term debt 503,600 Less: Taxes (rate=40%) Common stock 78,000 Retained earnings 1,365.000 Net profits after taxes $ Total assets $2,950.000 Total liabilities and equity $2.950,000 Less: Cash dividends (35%) To Retained earnings Print Done b. Prepare a pro forma balance sheet for next year, using the information given and the judgmental approach. Includ s taxes on the inco Complete the assets part of the pro forma balance sheet for next vear. (Round to the nearest dollar) Enter any number in the edit fields and then continue to the next question. integrative-Pro forma statements Provincial imports, Inc., nas assembled last years Tinancial statements (income statement and balance sheet anonnancial projectons for use in preparing financial plans for the coming year. Information related to financial projections for next year is as follows: (1) Projected sales are $5.995.000. 2) Cost of goods sold last year includes $994.000 in fixed costs. (3) Operating expense last year includes $253.000 in fixed costs. 4) Interest expense will remain unchanged. - X Data Table 5) The firm will pay cash dividends amounting to 35% of net profits after taxes. (8) Cash and inventories will double 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 i 9) A new computer system costing $350,000 will be purchased during the year. Total depreciation expense for the y (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) (10) The tax rate will remain at 40%. a. Prepare a pro forma income statement for next year, using the fixed cost data given to improve the accuracy of the Provincial Imports, Inc. Income Statement b. Prepare a pro forma balance sheet for next year, using the information given and the judgmental approach. Includ for the Year Just Ended c. Analyze these statements, and discuss the resulting external financing required Sales revenue $5,005,000 2.752.000 Less Cost of goods sold a. Prepare a pro forma income statement for next year, using the fixed cost data given to improve the accuracy of the Gross profits $2,253,000 Complete the pro forma income statement for next year below: (Round to the nearest dollar.) Less Operating expenses 855,000 Operating profits $1,398,000 Pro Forma Income Statement Less: Interest expense 190,000 Net profits before taxes $1,208,000 Provincial Imports, Inc Less Taxes (rate = 40%) 483,200 $724,800 for Next Year Net profits after taxes Less Cash dividends 253 880 (percent-of-sales method) To retained earnings $471,120 Sales $ (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Less: Cost of goods sold Provincial Imports, Inc. Balance Sheet Gross profits $ for the Year Just Ended Assets Liabilities and Stockholders' Equity Less: Operating expenses Cash $198,000 Accounts payable $897,000 Operating profits $ Marketable securities 219,000 Taxes payable 95,000 Accounts receivable 618,000 Notes payable 206,000 Less: Interest expense Inventories 506,000 Other current liabilities 5.400 Net profits before taxes $1 Total current assets $1,541,000 Total current liabilities $1,003,400 Net fixed assets 1.400.000 Long-term debt 503,600 Less: Taxes (rate=40%) Common stock 78,000 Retained earnings 1,365.000 Net profits after taxes $ Total assets $2,950.000 Total liabilities and equity $2.950,000 Less: Cash dividends (35%) To Retained earnings Print Done b. Prepare a pro forma balance sheet for next year, using the information given and the judgmental approach. Includ s taxes on the inco Complete the assets part of the pro forma balance sheet for next vear. (Round to the nearest dollar) Enter any number in the edit fields and then continue to the next