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Lewis Company Pro Forma Income Statement Decenber 31, 2007 (Thousands of Dollars) 2007 Sales Operating costs EBIT Interest EBT Taxes (40%) Net income 7,450 1
Lewis Company Pro Forma Income Statement Decenber 31, 2007 (Thousands of Dollars) 2007 Sales Operating costs EBIT Interest EBT Taxes (40%) Net income 7,450 1 60 Less: Dividends: $1.04 150- Addition to R.E.E s 156 Lewis Company Pro Forma Balance Sheet Decenber 31, 2007 (Thousands of Dollars) 2007 Cash Receivables Inventories 720 Total current 240 assets $1,040 Fixed Total assets H2 Accounts Payable 160 Accrued Jiab.4 Notes payable 252 Total current 452 Long-term debt Zotal debt Common stesinaa Retained Earnings Total liabilities and equity A 20 55 939 On a separate plece of paper, the following exercises. 1. It expects sales to increase by 20% during 2008 and expects dividends per share to increase to $1.10, based upon 150 shares outstanding. Fixed Assets are closely tied to sales levels. Use the Percent of Sales method to project the 2008 financial the firn require? statementa for the firm . How uch AFN doe 2. The firm must maintain current ratio of 2.3 and a debt ratio of 40%. How much financing will be obtained using notes payable, long- term debt and common stock? Lewis Company Pro Forma Income Statement Decenber 31, 2007 (Thousands of Dollars) 2007 Sales Operating costs EBIT Interest EBT Taxes (40%) Net income 7,450 1 60 Less: Dividends: $1.04 150- Addition to R.E.E s 156 Lewis Company Pro Forma Balance Sheet Decenber 31, 2007 (Thousands of Dollars) 2007 Cash Receivables Inventories 720 Total current 240 assets $1,040 Fixed Total assets H2 Accounts Payable 160 Accrued Jiab.4 Notes payable 252 Total current 452 Long-term debt Zotal debt Common stesinaa Retained Earnings Total liabilities and equity A 20 55 939 On a separate plece of paper, the following exercises. 1. It expects sales to increase by 20% during 2008 and expects dividends per share to increase to $1.10, based upon 150 shares outstanding. Fixed Assets are closely tied to sales levels. Use the Percent of Sales method to project the 2008 financial the firn require? statementa for the firm . How uch AFN doe 2. The firm must maintain current ratio of 2.3 and a debt ratio of 40%. How much financing will be obtained using notes payable, long- term debt and common stock
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