The 2019 Income Statement and Balance Sheet are given below for Van Buren Enterprises. Using the assumptions provided, create the 2020 Pro Forma Income Statement and Balance Sheet. What is the External Funding Required? Van Buren Enterprises Van Buren Enterprises Income Statement ($ thousands) Balance Sheets Year Ended December 31st, 2019 Year Ended December 31st, 2019 ($ thousands) 2019 Actual Net Sales $ 9,870 2019 Actual Cost of Goods Sold 8,093 Current Assets Current Liabilities Gross Profit $ 1,777 Cash and Securities $ 540 Accounts Payable Accounts Receivable 1,485 Accured Wages Operating Expenses 986 Inventory 810 Total Depreciation Expense 182 Total $ 2,835 Operating Income (EBIT) $ 609 Long-Term Debt 2019 Actual $ 843 48 $ 891 $ 1,600 Net Fixed Assets $ 850 Interest Expense Taxable Income 83 526 $ $ Owner's Equity Common Stock Retained Earnings Total 200 994 Income Tax Expense 110 $ 1,194 Total Liabilities and Owners' Equity Net Income $ 416 Total Assets $ 3,685 $ 3,685 $ Growth rate in Net Sales Cost of Goods Sold (% of Sales) Operating Expenses (% of Sales) Depreciation Expense (estimate $) Interest Expense (Total estimate $) Tax Rate Dividend Payout Ratio Van Buren Enterprises Assumptions for 2020 30% Long-Term Debt ($ estimate) 82% Cash/Securities (Days of Sales) 10% Accounts Receivable (% of Sales) $ 192 Inventory Turnover $ 159 Accounts Payable Period (Days) 21% Accrued Wages ($ estimate) 50% Net Fixed Assets ($ estimate) 1,400 20 15% 10 38 63 950 $ $ Assume the Interest Expense estimate includes the cost of any new debt required, and Common Stock will not change. Create the 2020 Pro Forma Balance Sheet and Income Statements. What is the External Funding Required? Create your Original Solution Below - Be sure to show all calculations and clearly indicate answers. The 2019 Income Statement and Balance Sheet are given below for Van Buren Enterprises. Using the assumptions provided, create the 2020 Pro Forma Income Statement and Balance Sheet. What is the External Funding Required? Van Buren Enterprises Van Buren Enterprises Income Statement ($ thousands) Balance Sheets Year Ended December 31st, 2019 Year Ended December 31st, 2019 ($ thousands) 2019 Actual Net Sales $ 9,870 2019 Actual Cost of Goods Sold 8,093 Current Assets Current Liabilities Gross Profit $ 1,777 Cash and Securities $ 540 Accounts Payable Accounts Receivable 1,485 Accured Wages Operating Expenses 986 Inventory 810 Total Depreciation Expense 182 Total $ 2,835 Operating Income (EBIT) $ 609 Long-Term Debt 2019 Actual $ 843 48 $ 891 $ 1,600 Net Fixed Assets $ 850 Interest Expense Taxable Income 83 526 $ $ Owner's Equity Common Stock Retained Earnings Total 200 994 Income Tax Expense 110 $ 1,194 Total Liabilities and Owners' Equity Net Income $ 416 Total Assets $ 3,685 $ 3,685 $ Growth rate in Net Sales Cost of Goods Sold (% of Sales) Operating Expenses (% of Sales) Depreciation Expense (estimate $) Interest Expense (Total estimate $) Tax Rate Dividend Payout Ratio Van Buren Enterprises Assumptions for 2020 30% Long-Term Debt ($ estimate) 82% Cash/Securities (Days of Sales) 10% Accounts Receivable (% of Sales) $ 192 Inventory Turnover $ 159 Accounts Payable Period (Days) 21% Accrued Wages ($ estimate) 50% Net Fixed Assets ($ estimate) 1,400 20 15% 10 38 63 950 $ $ Assume the Interest Expense estimate includes the cost of any new debt required, and Common Stock will not change. Create the 2020 Pro Forma Balance Sheet and Income Statements. What is the External Funding Required? Create your Original Solution Below - Be sure to show all calculations and clearly indicate answers
