Red Queen Restaurants Income Statement, "for the Year Ended December 31, 2015", Sales revenue ,"$799,300" Less: Cost of goods sold,"599,600" Gross profits ,"$199,700" Less: Operating expenses,"99,600" Net profits before taxes ,"$100,100" Less: Taxes (40%),"40,040" Net profits after taxes ,"$60,060" Less: Cash dividends,"19,300" To retained earnings ,"$40,760"

Integrative -Pro forma statements Red Queen Restaurants wishes to prepare financial plans. Use the financial statements and the other information provided here EEB to prepare the financial plans. The following financial data are also available: (1) The firm has estimated that its sales for 2016 will be $899,800 (2) The firm expects to pay $35,700 in cash dividends in 2016 (3) The firm wishes to maintain a minimum cash balance of $30,000. (4) Accounts receivable represent approximately 21% of annual sales. (5) The firm's ending inventory will change directly with changes in sales in 2016 (6) A new machine costing $42,300 will be purchased in 2016. Total depreciation for 2016 will be $15,500. (7) Accounts payable will change directly in response to changes in sales in 2016. (8) Taxes payable will equal one-fourth of the tax liability on the pro forma income statement. (9) Marketable securities, other current liabilities, long-term debt, and common stock will remain unchanged a. Prepare a pro forma income statement for the year ended December 31, 2016, using the percent-of-sales method. b. Prepare a pro forma balance sheet dated December 31, 2016, using the judgmental approach. c. Analyze these statements, and discuss the resultina externel financing required. Integrative -Pro forma statements Red Queen Restaurants wishes to prepare financial plans. Use the financial statements and the other information provided here EEB to prepare the financial plans. The following financial data are also available: (1) The firm has estimated that its sales for 2016 will be $899,800 (2) The firm expects to pay $35,700 in cash dividends in 2016 (3) The firm wishes to maintain a minimum cash balance of $30,000. (4) Accounts receivable represent approximately 21% of annual sales. (5) The firm's ending inventory will change directly with changes in sales in 2016 (6) A new machine costing $42,300 will be purchased in 2016. Total depreciation for 2016 will be $15,500. (7) Accounts payable will change directly in response to changes in sales in 2016. (8) Taxes payable will equal one-fourth of the tax liability on the pro forma income statement. (9) Marketable securities, other current liabilities, long-term debt, and common stock will remain unchanged a. Prepare a pro forma income statement for the year ended December 31, 2016, using the percent-of-sales method. b. Prepare a pro forma balance sheet dated December 31, 2016, using the judgmental approach. c. Analyze these statements, and discuss the resultina externel financing required