Question: Next year National Beverage Company will increase its Plant Property

Next year, National Beverage Company will increase its Plant, Property, and Equipment (PPE) by $4,000,000 with a plant expansion. The inventories will grow by 30%, accounts receivable will grow by 20%, and marketable securities will be reduced by 50% to help finance the expansion. If all other asset accounts remain the same and long-term debt will be used to finance the remaining costs of the expansion (no change in common stock or retained earnings), prepare a pro forma balance sheet for 2010. How much additional debt will be estimated using this pro forma balancesheet?

View Solution:

Sale on SolutionInn
  • CreatedMay 08, 2014
  • Files Included
Post your question