Answered step by step
Verified Expert Solution
Question
1 Approved Answer
LUKE'S HOLIDAY SUPPLIES, INC. Pro Forma Statements Problem 1. Income Statement Year Ended 2018 Balance Sheet 12/31/18 Sales Cost of Goods Sold Gross Profit Expenses
LUKE'S HOLIDAY SUPPLIES, INC. Pro Forma Statements Problem 1. Income Statement Year Ended 2018 Balance Sheet 12/31/18 Sales Cost of Goods Sold Gross Profit Expenses Earnings Before Interest and Tax Interest Earnings Before Tax Tax (40%) Net Income Cash Marketable Securities Accounts Receivable Inventory $12,520 9,698 2,882 1.594 1,228 278 950 80 570 $ 110 360 2,220 Total Current Assets 900 Property/Plant/Equipment 4,730 Accumulated Depreciation680 Net Fixed Assets Total Assets Accounts Payable Notes Payable Accrued Expenses Accrued Tax $1,020 950 Total Current Liabilities Long Term Liabilities 450 030 2,500 Total Liabilities 5,530 Common Stock no par Retained Earnings 2,000 2,420 4,420 Total Equity Total Liabilities and Equity S9950 Based on the 2018 Financial Statements above, compute Pro Forma's for 2019 using the percent of sales method using the following assumptions a. b. c. 24.6% growth rate in sales, Tax rate remains at 40%, and Dividend payout remains at $450
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started