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Pro forma balance sheet. Next year, California Cement Company will increase its plant, property, and equipment by $6,082,000 with a plant expansion. The inventories will
Pro forma balance sheet. Next year, California Cement Company will increase its plant, property, and equipment by $6,082,000 with a plant expansion. The inventories will grow by 79% accounts receivable will grow by 67% and marketable securities will be reduced by 63% 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 for California Cement 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? Pro Forma Balance Sheet for the Year Ending December 31, 2014 ASSETS LIABILITIES Current assets Current liabilities Cash $ $ Accounts payable Other current liabilities Marketable securities $ $ $ Accounts receivable Total current liabilities $ Inventories $ s Total current assets s Long-term liabilities Long-term debt Other long-term liabilities Total long-term liabilities $ Long-term assets Plant, property and equipment Goodwill $ $ $ $ S Intangible assets Total long-term assets Total liabilities OWNERS' EQUITY Common stock $ s Retained earnings $ Total owners' equity $ TOTAL LIABILITIES AND TOTAL ASSETS OWNERS' EQUITY $ ASSETS LIABILITIES Current assets Cash Marketable securities $ $ $ 6.141 000 1. 106,000 s $ Accounts receivable Inventories Total current assets 7,247,000 S $ $ Current liabilities 1.462,000 Accounts payable 1.148.000 Other current liabilities 3.789.000 Total current liabilities 2667000 Long-term liabilities 9,066,000 Long-term debt Other long-term liabilities 6,731,000 Total long-term liabilities 4,061.000 Total liabilities 1511,000 OWNERS' EQUITY 12,303,000 Common stock Retained earnings Total owners' equity TO TAL LIABILITIES AND S 2,488 000 1 580.000 4,068,000 $ Long-term assets Plant property, and equipment Goodwill Intangible assets Total long-term assets $ S $ $ $ 11,315,000 $ $ $ $ 2447 000 7.607.000 10,054,000 S TOTAL ASSETS $ 21,369,000 OWNERS' EQUITY $ 21,369,000
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