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S. After completing the pro forma income statement in problem 6-4, Mr. Tine now realizes he should also complete a pro forma balance sheet. Net

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S. After completing the pro forma income statement in problem 6-4, Mr. Tine now realizes he should also complete a pro forma balance sheet. Net sales in 2015 were $90,000 and his forecasted sales for 2016 are $110,000. All of Sugar Cane Alley's current assets will remain the same percentage of sales as they were in 2015. Mr. Tine does not plan to buy or sell any same as 2015. In the liabilities and equity section, only accounts payable will remain equipment, so his gross property and equipment amount will remain the the same percentage of sales as in 2015. Except for retained earnings, the other accounts are expected to remain the same value as 2015. The following balances were taken from Sugar Cane Alley's end-of-2015 balance sheet: Cash Accounts Receivable Inventory Property and Equipment (gross) Accumulated Depreciation Property and Equipment (net) Accounts Payable Long-Term Notes Payable Retained Earnings Common Stock $10,000 2,220 8,000 25,000 4,000 21,000 1,380 8,000 5,000 26,840 a. Calculate the forecasted end-of-2016 values for each of the current asset accounts. b. Depreciation expense for 2016 is estimated to be $2,000. Calculate the estimated total assets for the end of 2016 Forecast the accounts payable for the end of 2016. What will total liabilities be at the end of 2016? Assuming the forecasted net income for 2016 is $19,351 and cash dividends paid equal $10,000, what total will be forecasted for the end-of-2016 total liabilities and equity? Based on these calculations of the pro forma balance sheet, are additional funds needed? c. d. e. f. Net income for 2015 was $14,840. What was Sugar Cane Alley's net profit margin for 2015? The forecasted net income for 2016 is S19,351. What is Sugar Cane Alley's forecasted 2016 net profit margin? g

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