Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Rockway Framers LTD Will Tip Please help me complete Question 3 but only need help on preparing the Balance sheet. Thank you ROCKWAY FRAMERS LTD.

image text in transcribed

Rockway Framers LTD Will Tip

Please help me complete Question 3 but only need help on preparing the Balance sheet.

Thank you

ROCKWAY FRAMERS LTD. Balance Sheets December 31 20XX 20XW Current assets: Cash.. $ 1,300 $ 20,000 36,000 28,000 ROCKWAY FRAMERS LTD. Accounts receivable Income Statements Inventories 101,000 64,500 Year Ended Dec. 31, 138,300 Total current assets. Land. 112,500 44,500 20XX 20XW 57,700 Sales.. $355,200 $277,500 222,000 155,000 Buildings and equipment Less: Accumulated amortization... Cost of goods sold.. 213,120 166,500 85,000 62,000 142,080 111,000 Total assets. $333,000 $250,000 Contribution margin Sales and administration expenses.. 82,140 74.370 $ 23,250 Amortization Current liabilities: Accounts payable. Notes payable Total current liabilities $ 48,770 104,500 23,000 10,000 36,940 26,630 37.750 Operating income 153,270 61,000 Interest 14,200 6,800 51,000 64,000 Long-term debt. Common stock. Earnings before taxes Taxes. 70,000 22,740 19,830 5,685 4,958 $ 17,055 S 14,872 70,000 58.730 $333,000 55,000 Retained earnings Total liabilities and equity. Net income $ 250,000 3. Prepare pro forma statements for 20XY (Balance Sheet and Income Statement) on the basis of the same financial relationships as in 20XX, no new capital asset purchases, and a sales increase of 25%. Include calculations for required new funds if necessary ROCKWAY FRAMERS LTD. Balance Sheets December 31 20XX 20XW Current assets: Cash.. $ 1,300 $ 20,000 36,000 28,000 ROCKWAY FRAMERS LTD. Accounts receivable Income Statements Inventories 101,000 64,500 Year Ended Dec. 31, 138,300 Total current assets. Land. 112,500 44,500 20XX 20XW 57,700 Sales.. $355,200 $277,500 222,000 155,000 Buildings and equipment Less: Accumulated amortization... Cost of goods sold.. 213,120 166,500 85,000 62,000 142,080 111,000 Total assets. $333,000 $250,000 Contribution margin Sales and administration expenses.. 82,140 74.370 $ 23,250 Amortization Current liabilities: Accounts payable. Notes payable Total current liabilities $ 48,770 104,500 23,000 10,000 36,940 26,630 37.750 Operating income 153,270 61,000 Interest 14,200 6,800 51,000 64,000 Long-term debt. Common stock. Earnings before taxes Taxes. 70,000 22,740 19,830 5,685 4,958 $ 17,055 S 14,872 70,000 58.730 $333,000 55,000 Retained earnings Total liabilities and equity. Net income $ 250,000 3. Prepare pro forma statements for 20XY (Balance Sheet and Income Statement) on the basis of the same financial relationships as in 20XX, no new capital asset purchases, and a sales increase of 25%. Include calculations for required new funds if necessary

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

Step: 3

blur-text-image

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

Accounting

Authors: Michael J. Jones

3rd Edition

1119977185, 9781119977186

More Books

Students also viewed these Accounting questions

Question

I need answer in english 3 1 9 . Question in Chemical Engineering

Answered: 1 week ago

Question

1 What is meant by systematic training?

Answered: 1 week ago