Question 14 (5 points) Listen What is proforma dividends in 2020? 126 192 110 180 View hint for Question 14 Question 15 (5 points) Listen What is proforma total equity in 2020? 1,423 1,065 1,238 905 Willors PROFORMA ASSUMPTIONS Below is GAP Inc.'s financial statements for 2018 and 2019. Prof is 2020. Due to Covid-19 pandemic, GAP Inc expects that sales growth in 2020 will be 134. Ruyrardless of lower than expected sales growth. GAP Inc is planning to expand its operations to new cition in 2020. For the planned expansion, GAP Inc. received $1.700 additional long-term loan from JP Morgan Chase and will use this loan to finance the purchase of a new office building. Salaries are expected be $113. The market conditions will lead COGS will be 10 percent lower than the 2019 level. When projecting the 2020 balance sheet, GAP Inc. believed that the accounts receivable days will be 7 days higher than ACP days of last year. Inventory days and accounts payable amount will remain unchanged from 2019 since the business has recently been rewarded with extended payment terms from its suppliers going forward Current muturities (CMLID), minimum cash ratio and dividend payment will remain same as in 2019. Tax rate is 14%. Interest rate for long-term loan in 2020 is projected to be 4%. Interest expense on short term debt is delayed until 2021 (this means apply the interest rate only on long-term debt). Rental expenso would be $6 a month. Depreciation expense would be the same percentage of gross fixed assets as was in 2019. With these expectations proform Net Income will be $794 INCOME STATEMENT Net Sales Cost of goods sold Salaries Rental expenses Depr. Expense Interest expense Tax expense Net income (loss) 2013 2012 1,316 1,658 332 673 90 100 26 18 12 30 560 338 48 71 248 428 2015 20 BALANCE SHEET Cash Accounts receivable Inventory Total Current Assets GFA Accd depre Net fixed assets Total Assets Accounts payable Bank line of credit Current portion due on term loan Total Current abilities Long-term debt Total Limbilities Total equity Total Liabilities and Equity 2018 26 72 85 183 1.138 110 1,028 1,211 39 82 78 180 1,575 140 1.435 1,615 52 225 70 347 70 109 875 984 227 1,211 805 2.152 1615