fm14 8 - 7,452 7,452 Inventories 9,000 0.2005 10,350 10,350...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Answers and Solutions: 14 - 8 14-8 a. Stevens Textiles Pro Forma Income Statement December 31, 2008 (Thousands of Dollars) Forecast Pro Forma 2007 Basis 2008 Sales $36,000 1.15 × Sales 07 $41,400 Operating costs $32,440 0.9011 × Sales 08 37,306 EBIT $ 3,560 $ 4,094 Interest 460 0.10 × Debt 07 560 EBT $ 3,100 $ 3,534 Taxes (40%) 1,240 1,414 Net income $ 1,860 $ 2,120 Dividends (45%) $ 837 $ 954 Addition to RE $ 1,023 $ 1,166 Stevens Textiles Pro Forma Balance Sheet December 31, 2008 (Thousands of Dollars) Forecast Pro Forma Basis % after 2007 2008 Sales Additions Pro Forma Financing Financing Cash $ 1,0800 0.0300 $ 1,242 $ 1,242 Accts receivable 6,480 0.1883
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: 7,452 7,452 Inventories 9,000 0.2005 10,350 10,350 Total curr . assets $16,560 $19,044 $19,044 Fixed assets 12,600 0.3500 14,490 14,490 Total assets $29,160 $33,534 $33,534 Accounts payable $ 4,320 0.1200 $ 4,968 $ 4,968 Accruals 2,880 0.0800 3,312 3,312 Notes payable 2,100 2,100 +2,128 4,228 Total current liabilities $ 9,300 $10,380 $12,508 Long-term debt 3,500 3,500 3,500 Total debt $12,800 $13,880 $16,008 Common stock 3,500 3,500 3,500 Retained earnings 12,860 1,166 * 14,026 14,026 Total liabilities and equity $29,160 $31,406 $33,534 AFN = $ 2,128 * From income statement....
View Full Document

Ask a homework question - tutors are online