Table 613 Pro forma Balance Sheet Using Percentage of Sales

		Total Sales Current Year $275,000	Percentage of Sales (%)	Forecast Sales Net Year $350,000
Assets
	Current Assets
	Cash	$ 5,694
	Accounts Receivable	19,662
	Inventory	3,381		______________
Total Current Assets		$28,737
Fixed Assets
	Furniture & Fixtures	5,595
	Transporation Equipment	25,456		______________
Total Fixed Assets		$31,051
Total Assets		$59,788		______________
Liabilities and Owners Equity
Current Liabilities
	Notes Payable	$15,456
	Accrued Taxes Payable	3,598		______________
Total Current Liabilites		$19,054
Long Term Debt		18,654		______________
Total Liabilities		$37,708
Owners Equity		22,080		______________
Total Liabilities and Owners Equity		$59,788		______________

Using Table 613, create a pro forma balance sheet using the percentage of sales method. If net income next year is $50,000, answer the following:

a. How much did the owners take out of the business?

b. What is the profit margin for next year?