It is now January $2018.$ The year $2017$ finished well. The finalized year$-$end financial statements for $2017$ are provided in the excel file associated with this assignment.

Randolf and Tenisa at Comfy Home would like the accountant to prepare pro$-$forma financial statements for $2018$ based on an optimistic sales forecast. Tenisa has won the business of a large corporate client and the couple believe that Comfy Home revenues will increase by $30\%$ in $2018$ as compared with the year $2017.$

Using the actual financial statements for $2017($in the excel file with this assignment$),$ please prepare a pro$-$forma balance sheet and income statement for $2018$ using the percent of sales method. For any financial statement line items where no additional information is provided to indicate otherwise, assume the line item changes proportionally to sales. Note: Please use excel formulas for all calculations and do not round any intermediate steps. If you round during intermediate steps, you may get rounding errors resulting in incorrect answers.

Randolf and Tenisa provide the following additional information to the accountant to prepare the pro$-$forma statements:

No new investments in furniture and fixtures or buildings and property are expected for $2018.$

Of the $$540,000$ in building and properties at year$-$end $2017,$ $$365,000$ represents buildings and $$175,000$ represents property $($land$).$ The buildings are being depreciated straight$-$line over $10$ years with no salvage value.

The furniture and fixtures are being depreciated straight$-$line over $15$ years with no salvage value.

The $$45,000$ current portion of the bank loan will be paid on December $31,2018.$ Of the $$255,000$ in long term debt, another $$45,000$ comes due on December $31,2019.$

Comfy Home does not plan to obtain any additional loans in $2018.$

The interest rate for Comfy Home$$s borrowing has declined recently to $6\%.$ It is expected to be the average rate of interest for Comfy Home short and long$-$term borrowings in $2018.$ Use total beginning borrowings to estimate the interest expense for $2018.$

Comfy Home's expected tax rate is $25\%.$ Comfy Home has no outstanding deferred tax assets or deferred tax liabilities.

Comfy Home is planning a $$50,000$ cash disbursement to its owners on $12/31/2018.$ No contributions to owners$$ equity are foreseen.

Comfy Home$$s insurance premium covers its buildings and property as well as liability and is not expected to increase in $2018.$

Use Cash as the plug in the pro$-$forma financial statements.

$1)$ What is the forecasted interest expense on Comfy Home$$s $2018$ pro$-$forma financial statements?

$2)$ What is the forecasted cost of goods sold on Comfy Home$$s $2018$ pro$-$forma financial statements?

$3)$ What is the forecasted insurance expense on Comfy Home$$s $2018$ pro$-$forma financial statements?

$4)$ What is the forecasted furniture and fixtures on Comfy Home$$s $2018$ pro$-$forma financial statements?

$5)$ What is the forecasted inventories on Comfy Home$$s $2018$ pro$-$forma financial statements?

$6)$ What is the forecasted current portion of bank loan on Comfy Home$$s $2018$ pro$-$forma financial statements?

$7)$ What is the forecasted bank loan $($long term portion only$)$ on Comfy Home$$s $2018$ pro$-$forma financial statements?

$8)$ What is the forecasted contributed capital on Comfy Home$$s $2018$ pro$-$forma financial statements?

$9)$ What is the forecasted accounts receivable on Comfy Home$$s $2018$ pro$-$forma financial statements?

$10)$ What is the forecasted deferred revenue on Comfy Home$$s $2018$ pro$-$forma financial statements?

$11)$ What is the forecasted cash on Comfy Home$$s $2018$ pro$-$forma financial statements?