Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

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

Total current assets

$

8,513,000

Long-term debt

$

1,382,000

Long-term assets

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

Total long-term assets

$

21,535,000

Common stock

$

6,814,000

Retained earnings

$

10,014,000

Total owners' equity

$

16,828,000

TOTAL LIABILITIES AND

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

$

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.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

International Corporate Finance

Authors: Mark R. Eaker, Frank J. Fabozzi, Dwight Grant

1st Edition

0030693063, 9780030693069

More Books

Students also viewed these Finance questions

Question

=+a) How often will you arrive at work in less than 22 minutes?

Answered: 1 week ago

Question

Identify cultural barriers to communication.

Answered: 1 week ago

Question

Explain how cultural differences affect business communication.

Answered: 1 week ago