= Z 123 456N Assignment 4.4 Exercises Van Buren Enterprises Income Statement ($ thousands) 7 Year Ended December 31st, 2019 Problem 2: Creating Proforma Financial Statements 10 Points 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 Balance Sheets Year Ended December 31st, 2019 ($ thousands) 8 2019 Actual 9 Net Sales $ 9,870 2019 Actual 2019 Actual 10 Cost of Goods Sold 8,093 Current Assets Current Liabilities 11 Gross Profit $ 1,777 Cash and Securities $ 12 Accounts Receivable 13 Operating Expenses 986 Inventory 540 1,485 810 Accounts Payable Accured Wages $ 843 48 Total $ 891 14 Depreciation Expense 182 Total $ 2,835 15 Operating Income (EBIT) $ 609 Long-Term Debt $ 1,600 16 17 Interest Expense 83 Net Fixed Assets $ 850 Owner's Equity 18 Taxable Income $ 526 Common Stock $ 200 19 Retained Earnings 994 20 Income Tax Expense 110 Total $ 1,194 21 $ 416 Total Assets $ 3,685 Total Liabilities and Owners' Equity $ 3,685 5. 22 Net Income 23 24 25 26 27 28 Growth rate in Net Sales Cost of Goods Sold (% of Sales) Operating Expenses (% of Sales) Van Buren Enterprises Assumptions for 2020 30% 82% 10% Long-Term Debt ($ estimate) Cash/Securities (Days of Sales) Accounts Receivable (% of Sales) $ 1,400 20 15% 29 30 31 Depreciation Expense (estimate $) Interest Expense (Total estimate $) Tax Rate $ 192 Inventory Turnover 10 159 Accounts Payable Period (Days) 38 32 Dividend Payout Ratio 21% 50% Accrued Wages ($ estimate) $ 63 33 34 Net Fixed Assets ($ estimate) 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? $ 950 35 36 Create your Original Solution Below - Be sure to show all calculations and clearly indicate answers.