Unuple 4TIUTework TTT UITt. Save Score: 0 of 10 pts 13 of 15 (12 complete) HW Score: 66 29 %, 66 29 of 100 pts P4-20 (similar to) Question Help Integrative-Pro forma statements Red Queen Restaurants wishes to prepare financial plans. Use the financial statements and the other information provided here prepare the financial plans The following financial data are also available (1) The firm has estimated that its sales for 2020 will be $899.100 (2) The firm expects to pay $34.300 in cash dividends in 2020 (3) The firm wishes to maintain a minimum cash balance of $30 900 (4) Accounts receivable represent approximately 22% of annual sales (5) The firm's endina inventory will chanae directly wth changes in sales in 2020 to TLU (3l U Question Help 3) ine rm wisnes to maintain a minimum casn oaiance or 33u,yUu (4) Accounts receivable represent approximately 22 % of annual sales (5) The firm's ending inventory will change directly with changes in sales in 2020 (6) A new machine costing $43,500 will be purchased in 2020. Total depreciation for 2020 will be $16.300 (7) Accounts payable will change directly in response to changes in sales in 2020 (8) Taxes payable will equal one-fourth of the tax liability on the pro forma income statemont (9) Marketable securities, other current liabilities, long-term debt, and common stock will remain unchanged a. Prepare a pro forma income statement for the vear ended December 31, 2020 using the percent-ofsales method a. Prepare a pro forma income statement for the year ended December 31 2020 using the percent-of-aales method 2020 below (Round fo the nearest dollar. Round the percentage of sales to four decimal places) Complete the pro forma income statement for the year ended December 31 Score: 0 of 10 pts 13 of 15 (12 complete) HW Scc P4-20 (similar to) (6) A new machine costing $43,500 will be purchased in 2020. Total depreciation for 2020 will be $16,300 (7) Accounts payable will change directly in response to changes in sales in 2020. (8) Taxes payable will equal one-fourth of the tax liability on the pro forma income statement (9) Marketable securities, other current liabilities, long-term debt, and common stock will remain unchanged a. Prepare a pro forma income statement for the year ended December 31, 2020, using the percent-of-sales method. b. Prepare a pro forma balance sheet dated December 31, 2020, using the judgmental approach c. Analyze these statements, and discuss the resulting external financing required Red Queen Restaurants Income Statement for the Year Ended December 31, 2019 Sales revenue $800,900 599,800 Less: Cost of goods sold Gross profits Less: Operating expenses Net profits before taxes Less: Taxes (rate 21 % ) Net profits after taxes Less: Cash dividends $201.100 100.100 $101,000 21.210 $79,790 20,700 $59,090 To retained earnings h pm Red Queen Restaurants Balance Sheet December 31, 2019 Assets Liabilities and Stockholders' Equity Accounts payable Taxes payable Other current liabilities Cash $32,200 17.700 $101,000 20,200 Marketable securities Accounts receivable 149,500 4,900 to fou Inventories 99,900 Total current liabilities $126,100 $198,100 $149,200 Total current assets $299.300 Long-term debt Net fixed assets 349,100 Common stock Retained earnings Total liabilities and equity $175,000 $648 400 $648,400 Total assets