The Calculations start from #3, #1 - #2 are only the figures, I'm looking for the Cash Budget, Proforma IS, and Proforma BS
1. HERA Sales
2. Forecast
3. Sales Budget
4. S&A Expenses Budget
5. Direct Material Budget
6. Direct Labour Budget
7. Mfg OVH Budget
8. Production Budget
9. Cash Budget
10. Proforma IS
11. Profroma BS
A B D E F G H HERA Manufacturing Company Month Jan Y a r 1 Background: These are the sales data of Hera, a winter sportwear manufacturer which manufacturers skis. You are Hera sales manager. You have to prepare a 12-month forecast for Year 5 in units and euros. You have the monthly unit sales data for the last 4 years; your average unit price to distributors has been 105 last year and you do not think it is possible to increase it. Cash collection is as follows: 80% of sales of month M are collected in M+1 19% of sales of month M are collected in M+2 1% of sales is never collected Y e r N Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Sales 13.114 10.793 12.765 13.573 20.930 22.830 25.206 18.360 10.199 12.672 12.851 16.246 15.716 17.341 20.032 14.853 24.324 27.890 29.185 20.494 15.011 17.786 12.485 19.547 17.160 21.596 23.569 15.779 25.183 30.255 30.999 25.407 15.542 20.495 19.115 20.520 21.242 19.968 24.674 21.972 23.949 35.586 40.042 32.246 17.480 21.599 16.875 21.242 Y e a r 3 Y a r Hera Manufacturing Forecast in Units RSt Year 1 Month Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul January February March April May June July August September October November December Year 2 0,98 1,05 1,17 0,86 1,39 1,55 1,59 1,11 0,79 0,92 0,65 1,00 Year 3 0.87 1,08 1,16 0,77 1,23 1,46 1,49 1,20 0,73 0,95 Year 4 Average 0,95 0,93 0,89 1,01 1,10 1,14 0,96 0,86 1,05 1,22 1,53 1,51 1,67 1,58 1,15 0,76 0,94 0,76 0,99 12,86 0.87 1,03 0,93 Aug 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug. Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Sales MA-12 13.114 10.793 12.765 13.573 20.930 22.830 25.206 18.360 10.199 12.672 12.851 16.246 15.795 15.716 16.012 17.341 16.557 20.032 17.163 14.853 17.270 24.324 17.552 27.890 17.974 29.185 18.306 20.494 18.484 15.011 18.885 17.786 19.311 12.485 19.280 19.547 19.555 17.160 19.676 21.596 20.030 23.569 20.325 15.779 20.402 25.183 20.474 30.255 20.671 30.999 20.822 25.407 21.231 15.542 21.276 20.495 21.501 19.115 22.054 20.520 22.135 21.242 22.475 19.968 22.340 24.674 22.432 21.972 22.948 23.949 22.845 35.586 23.289 40.042 24.043 32.246 24.613 17.480 24.774 21.599 24.866 16.875 24.679 21.242 24.740 1,03 0,98 1,05 1,17 0,86 1,39 1,55 1,59 1,11 0,79 0,92 0,65 1,00 0,87 1,08 1,16 0.77 1,23 1,46 1,49 1,20 0.73 0.95 0,87 0,93 0,95 0,89 1.10 0,96 1,05 1,53 1,67 1,31 0,71 0,87 0,68 0.86 DSt 14.057 10.724 11.175 15.716 17.136 15.075 15.924 15.928 13.372 13.522 16.973 16.492 16.846 17.230 17.537 17.198 19.915 18.416 18.438 17.778 19.682 18.979 16.490 19.844 18.394 21.457 20.634 18.270 20.618 19.978 19.584 22.041 20.378 21.870 25.246 20.831 22.769 19.840 21.601 25.440 19.609 23.498 25.298 27.974 22.918 23.048 22.288 21.564 Slope = 228 Intercept = 13.564 Hera Manufacturing - Sales and Cash Collection Budget Year 5 Year 4 Dec 21.242 105 2.230.374 Units (pairs of skis) ASP [] Amount [] Jan 23.093 105 2.424.761 Total Sales 334.009 Feb 25.142 105 2.639.906 Mar 28.796 105 3.023,537 Apr 21.969 105 2.306.778 May 31.348 105 3.291.526 Year 5 Jun Jul 39.216 41.349 105 105 4.117.639 4.341.623 Aug 30.376 105 3.189.436 Sep 20.272 105 2.128.570 Oct 25.122 105 2.637.802 Nov 20.471 105 2.149.430 Year 6 Jan 25.649 105 2.693.185 Dec 26.857 105 2.819.978 35.070.984 80% of sales 19% of sales Cash inflow 2.111.924 460.705 2.572.629 2.418.829 501.582 2.920.411 1.845.422 574.472 2.419.894 2.633.221 438.288 3.071.509 3.294.111 625.390 3.919.501 3.473.298 782.351 4.255.650 2.551.549 824.908 3.376.457 1.702.856 605.993 2.308.849 2.110.241 404.428 2.514.670 1.719.544 501.182 2.220.726 2.255.982 408.392 2.664.374 Accounts receivable 4.021.285 3.200.170 Cash Collection Expectations 80% of sales of month M are collected in M+1 19% of sales of month M are collected in M+2 1% of sales is never collected Hera Manufacturing - Selling & Administrative Expense Budget Year 5 Jun Jan Feb Mar Apr May Jul Aug Sep Oct Noy Dec Total Units (pairs of skis) ASP () Amount [] Total Selling and Admin Expenses [] Sales salaries &benefits Sales commissions Selling expenses (TML) Advertising expenses Promotions Not collected sales Administrative salaries General Management Shipping expenses Office rent Office utilities (elect, water) Telecom expenses IT expenses Insurance Total F V F F V V F F V F F SV F F Cash outflow (1) Selling and Administrative Expenses Sales salaries & benefits: 20 sales persons at average 100'000/yr Sales commissions: 10% of salary & benefits paid quarterly if quarter sales > 7.5M (Starting in March.) Selling expenses: Travel, meals and lodging of the 20 sales persons (Historical data indicate about 15/month.sales person) Advertising expenses: None in May to Aug. 100K in Jan, Mar, Apr & Sept; 300K in Feb and Oct; 500K in Nov and Dec Promotions: Sell-in promotions of SOK in Jun and Jul, of 60K in Aug and Sell-out promotions of 500K in Mar and Dec. Administrative salaries: 15 persons with average salary and benefits of 60K/yr General management: Salaries &n benefits of the CEO (200K), CMO (180K), CFO (180K) and a secretary (80K) Shipping expenses: 150 per 100 pairs of skis Office rent: 240K/yr Office utilities: Historical data indicate average monthly expenses of 16 Telecom expenses: Fixed monthly expenses: 1K; Variable expenses : 0.003 /Sales amount IT expenses: : 65 per person employed (exluding CEO; CMO; CFO and secretary) Insurance: 80K paid quarterly at the begining of quarter Hera Manufacturing - Direct Material Budget Year 5 Jun Year 6 Jan Jan Feb Mar Apr May Jul Aug Sep Oct Nov Dec Units (pairs of skis) ASP ) Amount [] Desired ending inventory Needed quantity Begining Inventory Quantity to be produced .... - - - - - - Direct Material Budget [] Fiberglass Polymers Steel Plastic Glue Total 30/ski pair 5/ski pair 7/ski pair 1/ski pair 1/ski pair - - - .... - 910.000 Accounts payable Cash outflow (2) 910.000 Inventory Desired ending inventory = 20% of following month units forecast to be sold Direct Material Budget: Fiber glass Polymers Steel Plastic Glue 30 per pair of skis 5 per pair of skis 7 per pair of skis 1 per pair of skis 1 per pair of skis Cash disbursement: Suppliers are paid the amount of material used in month M in M+1 Closing inventory on Dec. 31, Year 4 was 5'027 pairs of skis Accounts payable on Dec. 31, Year 4 were 910'000 Desired ending inventory Needed quantity Begining Inventory Quantity to be produced Direct Labour expenses [C] Direct salaries & benefits Direct labor overtime cost Direct supervision s&b Supervision overtime costs: Engineers' salaries & benefits Total F V F V F Cash outflow (3) Direct Labour Expenses: Direct salaries & benefits: Direct labor overtime costs: Direct supervision s&b: Supervision overtime costs: Engineers' salaries & benefits: 56 workers with a fixed salary & benefits of 25k/yr on average. A worker produces on average 25 pairs of skis per labor day. 15 per overtime hour. 3 pairs of skis can be produced per hour. 8 foremen lead the 8 7-member teams. Each foreman costs 35K/yr on average. 21 per overtime hour. 2 engineers at 50K/yr each. They maintain the 8 production lines, supervise the ski test process and ensure the material incoming inspection Hera Manufacturing - Manufacturing Overhead Budget Year 5 Year 6 Jan Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Units (pairs of skis] ASP ) Amount [] Desired ending inventory Needed quantity Begining Inventory Quantity to be produced Manufacturing Overhead Expenses [] Depreciation of equipment F General Production Management s&b F Insurance F Plant Utilities (electricity, energy, water) SV External services: Maintenance expenses: IT expenses Total Cash outflow (4): Manufacturing Overhead Expenses: : Depreciation of plant & equipment: General Production Management s&b: Insurances: Plant Utilities: pairs/month External services: Maintenance expenses: IT expenses: 10% per year on plant and machinery worth 22M (not part of the cash outflow) Salaries & benefits of COO (170K), manufacturing accountant (90K), purchaser (90K), secretary (6OKE) 200K/yr paid in advance quarterly, starting in January Historical data indicate a monthly average of 50K for electricity, energy (fuel, gas) and water plus 10K when production runs over 29'400 Miscellaneous services from plumbing to recruiting agency. Historical data put these services at 5k/month Maintenance contracts are worth 250K/yr plus extras for special maintenance and repairs for 110K/yr (historical data) Updates and upgrades of software and hardware of IT equipment. Contracts and historical data indicate a monthly average of 10K. Hera Manufacturing - Production Budget Year 5 Jun Year 6 Jan Jan Feb Mar Apr May Jul Aug Sep Oct Nov Dec Units (pairs of skis) ASP () Amount [] Desired ending inventory Needed quantity Begining Inventory Quantity to be produced Direct Material Budget [] Direct Labor Budget [] Manufacturing Overhead Budget [] Unit cost 7 #DIV/0! Total COGS #DIV/0! Inventory: #DIV/0! Cash outflow (2) Cash outflow (3) Cash outflow (4) Cash outflow (5) Hera Manufacturing - Cash Budget Year 5 Year 5 Jun Jan Feb Mar Apr May Jul Aug Sep Oct Nov Dec Units (pairs of skis) ASP [] Amount [C] Year 4 Dec 21.242 105 2.230.374 Opening cash balance Cash collection Cash available Cash inflow (1) S&A cash outflow Production cash outflow Equipment purchase Cash outflow (1) Cash outflow (5) Taxes Dividend Excess (deficiency) Minimum cash balance Interests on ST debt Interests on LT debt Borrowing Repayment Accumulated ST Borrowing Closing cash balance Cash budget elements: Minimum closing cash balance: 100'000 Opening cash balance: 889'113 Equipment purchases: 1750'000 in March and 1900'000 in October Taxes: 800'000 in April and 1'200'000 in October Dividend: 500K at each quarter starting in February Interests on ST debt: 12% per annum payable monthly Interests in LT debt: 6% per annum on 8M paid at each quarter end, starting in March Hera Manufacturing - Year 5 Pro Forma Income Statement Year 5 [] Sales revenues COGS #DIV/0! S&A expenses Operating profit Interests Earnings before tax Taxes Net Eamings Hera Manufacturing - Year 5 Pro Forma Balance Sheet Balance sheet as of Dec. 31 of Year 5 Assets Liabilities Accounts payable Cash Accounts receivable Inventory Current assets Current liabilities 22.000.000 Plant & machinery = 22.000.000 Plant & machinery Depreciation Land 22.000.000 Long term debt Equity Net earnings Dividend Total assets 22.000.000 22.000.000 Plant & machinery as of Dec. 31 of Year 4: 22'000'000 Land value: 2'000'000 Equity as of Dec. 31 of Year 4: 17'143'079 A B D E F G H HERA Manufacturing Company Month Jan Y a r 1 Background: These are the sales data of Hera, a winter sportwear manufacturer which manufacturers skis. You are Hera sales manager. You have to prepare a 12-month forecast for Year 5 in units and euros. You have the monthly unit sales data for the last 4 years; your average unit price to distributors has been 105 last year and you do not think it is possible to increase it. Cash collection is as follows: 80% of sales of month M are collected in M+1 19% of sales of month M are collected in M+2 1% of sales is never collected Y e r N Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Sales 13.114 10.793 12.765 13.573 20.930 22.830 25.206 18.360 10.199 12.672 12.851 16.246 15.716 17.341 20.032 14.853 24.324 27.890 29.185 20.494 15.011 17.786 12.485 19.547 17.160 21.596 23.569 15.779 25.183 30.255 30.999 25.407 15.542 20.495 19.115 20.520 21.242 19.968 24.674 21.972 23.949 35.586 40.042 32.246 17.480 21.599 16.875 21.242 Y e a r 3 Y a r Hera Manufacturing Forecast in Units RSt Year 1 Month Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul January February March April May June July August September October November December Year 2 0,98 1,05 1,17 0,86 1,39 1,55 1,59 1,11 0,79 0,92 0,65 1,00 Year 3 0.87 1,08 1,16 0,77 1,23 1,46 1,49 1,20 0,73 0,95 Year 4 Average 0,95 0,93 0,89 1,01 1,10 1,14 0,96 0,86 1,05 1,22 1,53 1,51 1,67 1,58 1,15 0,76 0,94 0,76 0,99 12,86 0.87 1,03 0,93 Aug 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug. Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Sales MA-12 13.114 10.793 12.765 13.573 20.930 22.830 25.206 18.360 10.199 12.672 12.851 16.246 15.795 15.716 16.012 17.341 16.557 20.032 17.163 14.853 17.270 24.324 17.552 27.890 17.974 29.185 18.306 20.494 18.484 15.011 18.885 17.786 19.311 12.485 19.280 19.547 19.555 17.160 19.676 21.596 20.030 23.569 20.325 15.779 20.402 25.183 20.474 30.255 20.671 30.999 20.822 25.407 21.231 15.542 21.276 20.495 21.501 19.115 22.054 20.520 22.135 21.242 22.475 19.968 22.340 24.674 22.432 21.972 22.948 23.949 22.845 35.586 23.289 40.042 24.043 32.246 24.613 17.480 24.774 21.599 24.866 16.875 24.679 21.242 24.740 1,03 0,98 1,05 1,17 0,86 1,39 1,55 1,59 1,11 0,79 0,92 0,65 1,00 0,87 1,08 1,16 0.77 1,23 1,46 1,49 1,20 0.73 0.95 0,87 0,93 0,95 0,89 1.10 0,96 1,05 1,53 1,67 1,31 0,71 0,87 0,68 0.86 DSt 14.057 10.724 11.175 15.716 17.136 15.075 15.924 15.928 13.372 13.522 16.973 16.492 16.846 17.230 17.537 17.198 19.915 18.416 18.438 17.778 19.682 18.979 16.490 19.844 18.394 21.457 20.634 18.270 20.618 19.978 19.584 22.041 20.378 21.870 25.246 20.831 22.769 19.840 21.601 25.440 19.609 23.498 25.298 27.974 22.918 23.048 22.288 21.564 Slope = 228 Intercept = 13.564 Hera Manufacturing - Sales and Cash Collection Budget Year 5 Year 4 Dec 21.242 105 2.230.374 Units (pairs of skis) ASP [] Amount [] Jan 23.093 105 2.424.761 Total Sales 334.009 Feb 25.142 105 2.639.906 Mar 28.796 105 3.023,537 Apr 21.969 105 2.306.778 May 31.348 105 3.291.526 Year 5 Jun Jul 39.216 41.349 105 105 4.117.639 4.341.623 Aug 30.376 105 3.189.436 Sep 20.272 105 2.128.570 Oct 25.122 105 2.637.802 Nov 20.471 105 2.149.430 Year 6 Jan 25.649 105 2.693.185 Dec 26.857 105 2.819.978 35.070.984 80% of sales 19% of sales Cash inflow 2.111.924 460.705 2.572.629 2.418.829 501.582 2.920.411 1.845.422 574.472 2.419.894 2.633.221 438.288 3.071.509 3.294.111 625.390 3.919.501 3.473.298 782.351 4.255.650 2.551.549 824.908 3.376.457 1.702.856 605.993 2.308.849 2.110.241 404.428 2.514.670 1.719.544 501.182 2.220.726 2.255.982 408.392 2.664.374 Accounts receivable 4.021.285 3.200.170 Cash Collection Expectations 80% of sales of month M are collected in M+1 19% of sales of month M are collected in M+2 1% of sales is never collected Hera Manufacturing - Selling & Administrative Expense Budget Year 5 Jun Jan Feb Mar Apr May Jul Aug Sep Oct Noy Dec Total Units (pairs of skis) ASP () Amount [] Total Selling and Admin Expenses [] Sales salaries &benefits Sales commissions Selling expenses (TML) Advertising expenses Promotions Not collected sales Administrative salaries General Management Shipping expenses Office rent Office utilities (elect, water) Telecom expenses IT expenses Insurance Total F V F F V V F F V F F SV F F Cash outflow (1) Selling and Administrative Expenses Sales salaries & benefits: 20 sales persons at average 100'000/yr Sales commissions: 10% of salary & benefits paid quarterly if quarter sales > 7.5M (Starting in March.) Selling expenses: Travel, meals and lodging of the 20 sales persons (Historical data indicate about 15/month.sales person) Advertising expenses: None in May to Aug. 100K in Jan, Mar, Apr & Sept; 300K in Feb and Oct; 500K in Nov and Dec Promotions: Sell-in promotions of SOK in Jun and Jul, of 60K in Aug and Sell-out promotions of 500K in Mar and Dec. Administrative salaries: 15 persons with average salary and benefits of 60K/yr General management: Salaries &n benefits of the CEO (200K), CMO (180K), CFO (180K) and a secretary (80K) Shipping expenses: 150 per 100 pairs of skis Office rent: 240K/yr Office utilities: Historical data indicate average monthly expenses of 16 Telecom expenses: Fixed monthly expenses: 1K; Variable expenses : 0.003 /Sales amount IT expenses: : 65 per person employed (exluding CEO; CMO; CFO and secretary) Insurance: 80K paid quarterly at the begining of quarter Hera Manufacturing - Direct Material Budget Year 5 Jun Year 6 Jan Jan Feb Mar Apr May Jul Aug Sep Oct Nov Dec Units (pairs of skis) ASP ) Amount [] Desired ending inventory Needed quantity Begining Inventory Quantity to be produced .... - - - - - - Direct Material Budget [] Fiberglass Polymers Steel Plastic Glue Total 30/ski pair 5/ski pair 7/ski pair 1/ski pair 1/ski pair - - - .... - 910.000 Accounts payable Cash outflow (2) 910.000 Inventory Desired ending inventory = 20% of following month units forecast to be sold Direct Material Budget: Fiber glass Polymers Steel Plastic Glue 30 per pair of skis 5 per pair of skis 7 per pair of skis 1 per pair of skis 1 per pair of skis Cash disbursement: Suppliers are paid the amount of material used in month M in M+1 Closing inventory on Dec. 31, Year 4 was 5'027 pairs of skis Accounts payable on Dec. 31, Year 4 were 910'000 Desired ending inventory Needed quantity Begining Inventory Quantity to be produced Direct Labour expenses [C] Direct salaries & benefits Direct labor overtime cost Direct supervision s&b Supervision overtime costs: Engineers' salaries & benefits Total F V F V F Cash outflow (3) Direct Labour Expenses: Direct salaries & benefits: Direct labor overtime costs: Direct supervision s&b: Supervision overtime costs: Engineers' salaries & benefits: 56 workers with a fixed salary & benefits of 25k/yr on average. A worker produces on average 25 pairs of skis per labor day. 15 per overtime hour. 3 pairs of skis can be produced per hour. 8 foremen lead the 8 7-member teams. Each foreman costs 35K/yr on average. 21 per overtime hour. 2 engineers at 50K/yr each. They maintain the 8 production lines, supervise the ski test process and ensure the material incoming inspection Hera Manufacturing - Manufacturing Overhead Budget Year 5 Year 6 Jan Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Units (pairs of skis] ASP ) Amount [] Desired ending inventory Needed quantity Begining Inventory Quantity to be produced Manufacturing Overhead Expenses [] Depreciation of equipment F General Production Management s&b F Insurance F Plant Utilities (electricity, energy, water) SV External services: Maintenance expenses: IT expenses Total Cash outflow (4): Manufacturing Overhead Expenses: : Depreciation of plant & equipment: General Production Management s&b: Insurances: Plant Utilities: pairs/month External services: Maintenance expenses: IT expenses: 10% per year on plant and machinery worth 22M (not part of the cash outflow) Salaries & benefits of COO (170K), manufacturing accountant (90K), purchaser (90K), secretary (6OKE) 200K/yr paid in advance quarterly, starting in January Historical data indicate a monthly average of 50K for electricity, energy (fuel, gas) and water plus 10K when production runs over 29'400 Miscellaneous services from plumbing to recruiting agency. Historical data put these services at 5k/month Maintenance contracts are worth 250K/yr plus extras for special maintenance and repairs for 110K/yr (historical data) Updates and upgrades of software and hardware of IT equipment. Contracts and historical data indicate a monthly average of 10K. Hera Manufacturing - Production Budget Year 5 Jun Year 6 Jan Jan Feb Mar Apr May Jul Aug Sep Oct Nov Dec Units (pairs of skis) ASP () Amount [] Desired ending inventory Needed quantity Begining Inventory Quantity to be produced Direct Material Budget [] Direct Labor Budget [] Manufacturing Overhead Budget [] Unit cost 7 #DIV/0! Total COGS #DIV/0! Inventory: #DIV/0! Cash outflow (2) Cash outflow (3) Cash outflow (4) Cash outflow (5) Hera Manufacturing - Cash Budget Year 5 Year 5 Jun Jan Feb Mar Apr May Jul Aug Sep Oct Nov Dec Units (pairs of skis) ASP [] Amount [C] Year 4 Dec 21.242 105 2.230.374 Opening cash balance Cash collection Cash available Cash inflow (1) S&A cash outflow Production cash outflow Equipment purchase Cash outflow (1) Cash outflow (5) Taxes Dividend Excess (deficiency) Minimum cash balance Interests on ST debt Interests on LT debt Borrowing Repayment Accumulated ST Borrowing Closing cash balance Cash budget elements: Minimum closing cash balance: 100'000 Opening cash balance: 889'113 Equipment purchases: 1750'000 in March and 1900'000 in October Taxes: 800'000 in April and 1'200'000 in October Dividend: 500K at each quarter starting in February Interests on ST debt: 12% per annum payable monthly Interests in LT debt: 6% per annum on 8M paid at each quarter end, starting in March Hera Manufacturing - Year 5 Pro Forma Income Statement Year 5 [] Sales revenues COGS #DIV/0! S&A expenses Operating profit Interests Earnings before tax Taxes Net Eamings Hera Manufacturing - Year 5 Pro Forma Balance Sheet Balance sheet as of Dec. 31 of Year 5 Assets Liabilities Accounts payable Cash Accounts receivable Inventory Current assets Current liabilities 22.000.000 Plant & machinery = 22.000.000 Plant & machinery Depreciation Land 22.000.000 Long term debt Equity Net earnings Dividend Total assets 22.000.000 22.000.000 Plant & machinery as of Dec. 31 of Year 4: 22'000'000 Land value: 2'000'000 Equity as of Dec. 31 of Year 4: 17'143'079
