Integrative-Pro forma statements Red Queen Restaurants wishes to prepare financial plans. Use the financial statements and the other information provided here to prepare the financial plans. The following financial data are also available: (1) The firm has estimated that its sales for 2020 will be $900,600. (2) The firm expects to pay $34,700 in cash dividends in 2020. (3) The firm wishes to maintain a minimum cash balance of $30,700. (4) Accounts receivable represent approximately 24% of annual sales. (5) The firm's ending inventory will change directly with changes in sales in 2020. (6) A new machine costing $42,600 will be purchased in 2020. Total depreciation for 2020 will be $16,900. (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. (9) 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. CITO a. Prepare a pro forma income statement for the year ended December 31, 2020, using the percent-of-sales method. Complete the pro forma income statement for the year ended December 31, 2020 below: (Round to the nearest dollar. Round the percentage of sales to four decimal places.) Pro Forma Income Statement Red Queen Restaurants for the Year Ended December 31, 2020 % (percent-of-sales method) Sales $ 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 $ % Data table To Retained earnings $ (Click on the icon located on the top-right corner of the data tables below in order to copy its contents into a spreadsheet.) Red Queen Restaurants Income Statement for the Year Ended December 31, 2019 Sales revenue $800,100 Less: Cost of goods sold 600,600 Gross profits $199,500 Less: Operating expenses 100,800 Net profits before taxes $98,700 Less: Taxes (rate=21%) 20,727 Net profits after taxes $77,973 Less: Cash dividends : 19,000 To retained earnings $58,973 Red Queen Restaurants Balance Sheet December 31, 2019 Assets Liabilities and Stockholders' Equity Cash $31,400 Accounts payable $99,900 Marketable securities 17,500 Taxes payable 20,800 Accounts receivable 149,200 Other current liabilities 4,700 Inventories 99,900 Total current liabilities $125,400 Total current assets $298,000 Long-term debt $197,400 Net fixed assets 349,900 Common stock $150, 100 Retained earnings $175,000 Total assets $647,900 Total liabilities and equity $647,900 Help me solve this View an example Get n
