Question
Next year, National Beverage Company will increase its plant, property, and equipment by $ 4,045,000 with a plant expansion. The inventories will grow by 31
Next year, National Beverage Company will increase its plant, property, and equipment by $ 4,045,000 with a plant expansion. The inventories will grow by 31 %, accounts receivable will grow by 18 %, and marketable securities will be reduced by 51 % to help finance the expansion. Assume all other asset accounts will remain the same and the company will use long-term debt to finance the remaining expansion costs (no change in common stock or retained earnings). Using this information and the balance sheet in the popup window, LOADING..., for National Beverage Company for 2013, prepare a pro forma balance sheet for 2014. How much additional debt will the company need using this pro forma balance sheet?
National Beverage Company | |||||
Balance Sheet for the Year Ending December 31, 2013 | |||||
ASSETS |
|
| LIABILITIES |
|
|
Current assets |
|
| Current liabilities |
|
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Cash | $ | 2,423,000 | Accounts payable | $ | 5,683,000 |
Marketable securities | $ | 1,601,000 | Other current liabilities | $ | 3,262,000 |
Accounts receivable | $ | 2,790,000 | Total current liabilities | $ | 8,945,000 |
Inventories | $ | 1,699,000 | Long-term liabilities |
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Total current assets | $ | 8,513,000 | Long-term debt | $ | 1,382,000 |
Long-term assets |
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| Other long-term liabilities | $ | 2,893,000 |
Plant, property, and equipment | $ | 13,700,000 | Total long-term liabilities | $ | 4,275,000 |
Goodwill | $ | 1,405,000 | Total liabilities | $ | 13,220,000 |
Intangible assets | $ | 6,430,000 | OWNERS' EQUITY |
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Total long-term assets | $ | 21,535,000 | Common stock | $ | 6,814,000 |
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| Retained earnings | $ | 10,014,000 |
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| Total owners' equity | $ | 16,828,000 |
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| TOTAL LIABILITIES AND |
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TOTAL ASSETS | $ | 30,048,000 | OWNERS' EQUITY | $ | 30,048,000 |
you need to fill :
National Beverage Company | |||||
Balance Sheet for the Year Ending December 31, 2013 | |||||
ASSETS |
|
| LIABILITIES |
|
|
Current assets |
|
| Current liabilities |
|
|
Cash | $ |
| Accounts payable | $ |
|
Marketable securities | $ |
| Other current liabilities | $ |
|
Accounts receivable | $ |
| Total current liabilities | $ |
|
Inventories | $ |
| Long-term liabilities |
|
|
Total current assets | $ |
| Long-term debt | $ |
|
Long-term assets |
|
| Other long-term liabilities | $ |
|
Plant, property, and equipment | $ |
| Total long-term liabilities | $ |
|
Goodwill | $ |
| Total liabilities | $ |
|
Intangible assets | $ |
| OWNERS' EQUITY |
|
|
Total long-term assets | $ |
| Common stock | $ |
|
|
|
| Retained earnings | $ |
|
|
|
| Total owners' equity | $ |
|
|
|
|
|
|
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TOTAL ASSETS | $ |
| TOTAL LIABILITIES AND OWNERS' EQUITY | $ |
|
How much additional debt will be estimated using this pro forma balance sheet? (Round to the nearest dollar.)
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