To the best of your ability and using the methodology in Chapter 3 from Analysis for Financial Management, use the following spread and assumptions to create a pro forma balance sheet and income statement for XYZ Corporation. Round your answers to the nearest whole dollar amount and place your answers in the numbered pro forma below. (Hint: #12 is a plug, which is equal to External Financing Required.) Assumptions for Pro Forma (2012) Required Cash on Hand Sales Growth Rate Accounts Payable Period (Days) Accounts Receivable Collection Period (Days) Inventory Turnover Gross Profit Margin Selling, General, and Administrative Expenses Retention Ratio Tax Rate 50 Days of S, G, & A Expenses 30% 60 45 9 times 13% 12% of Sales 50% 45% Pro Forma 2012 2011 $20,61 3 Net Sales 100.0% 100.0% 2009 $13,76 4 $11,69 9 $2,065 100.0% 2010 $16,10 4 $13,68 8 $2,416 $17,72 85.0% 5 COGS Gross Profit Expenses 15.0% 85.0% 15.0% 7 $2,886 36.0% 14.0% $2,267 11.0% S, G, & A Net Interest Expense Earnings before Tax $1,610 $110 10.0% 0.7% $1,2399.0% $103 0.7% $723 5.3% $325 2.4% $398 2.9% 2.6% Tax $313 $383 $529 $238 $291 Earnings after Tax 2.4% 1.4% Pro Forma 2012 2009 2010 Assets Current Assets Cash and Securities Accounts Receivable Inventories Prepaid Expenses Total Current Assets Net Fixed Assets Total Assets $551 14.3% $1,789 46.4% $1,376 35.7% $120.3% $3,728 96.8% $124 3.2% $3,852 100.0% $644 12.9% $2,094 42.0% $1,932 38.8% $150.3% $4,685 94.1% $295 5.9% $4,980 100.0% $412 $2,886 $2,267 $18 $5,583 $287 $5,870 7.0% 49.28 38.6% 0.3% 95.1% 4.9% 100.0% Liabilities and Owner's Equity Current Liabilities Bank Loan Accounts Payable CMLTD Accrued Wages Total Current Liabilities Long Term Debt Total Liabilities Common Stock Retained Earnings Total Owner's Equity Total Liabilities and Owner's Equity $50 $1,443 $50 $ 7 S1,550 $910 $2,460 $150 $1,242 $1,392 1.3% 37.5% 1.32 0 .XX 40.28 23.6% 63.9% 3.9% 32.2% 36.16 $50 1.0% $2,426 43.7% $50 1.0% $100 .2 $2,536 50.98 $860 17.32 $3,396 68.2% $150 3.0% $1,434 28.8% $1,584 31.82 $50 53,212 $100 918 $3,380 $760 54,140 5150 51,580 $1,730 0.93 56.7% 1.7% 0.3% 57.6% 12.9% 70.5% 2.6% 26.9% 29.5% $3,852 100.0% 54,980 100.0% $5,870 100.0% Place your answers in the blanks below. The blanks above are provided only as a reference/work area (000's) Pro Forma 2012 Net Sales COGS Gross Profit Expenses S, G, GA Net Interest Expense Earnings before Tax Tax Earnings after Tax Pro Forma 2012 Assets Current Assets Cash and Securities Accounts Receivable Inventories Prepaid Expenses Total Current Assets Net Fixed Assets Total Assets $20 $280 Liabilities and Owner's Equity Current Liabilities Bank Loan Accounts Payable CMLTD $100 Accrued Wages Total Current Liabilities Long Term Debt Total Liabilities $150 Common Stock Retained Earnings Total Owner's Equity Total Liabilities and Owner's Equity