Extra Credit assignment

Extra Credit assignment - the next year are expected to...

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Extra credit individual assignment The following are the balance sheet and income statements for the year that just ended: Sales 1,400 Operating Costs 1,150 EBIT 250 Interest 20 EBT 230 Taxes (30%) 69 Net income 161 Dividend 0 Cash 60 Accounts payable 50 Account receivable 80 Notes payable 70 Inventories 100 Long-term debt 150 Fixed assets 250 Common stock 50 Retained earnings 170 Total assets 490 490 Fixed assets are being used at full capacity and can be increased only by increments of 50%. Sales for
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Unformatted text preview: the next year are expected to increase by 30%. Use the percent of sales method to construct a 1 st pass pro forma income statement and balance sheet. For the 2 nd pass, assume that all the additional needed funds will come in the form of notes payable at an interest rate of 8%. 1...
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