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Unformatted text preview: The pro forma balance sheet will look like this: MOOSE TOURS INC. Pro Forma Balance Sheet Assets Liabilities and Owners Equity Current assets Current liabilities Cash $ 30,360 Accounts payable $ 81,600 Accounts receivable 48,840 Notes payable 17,000 Inventory 104,280 Total $ 98,600 Total $ 183,480 Long-term debt 158,000 Fixed assets Net plant and Owners equity equipment 495,600 Common stock and paid-in surplus $ 140,000 Retained earnings 278,632 Total $ 418,632 Total liabilities and owners Total assets $ 679,080 equity $ 675,232 So the EFN is: EFN = Total assets Total liabilities and equity EFN = $679,080 675,232 EFN = $3,848 26. First, we need to calculate full capacity sales, which is: Full capacity sales = $929,000 / .80 Full capacity sales = $1,161,250 The capital intensity ratio at full capacity sales is:...
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- Spring '08