Prepare an income statement for the year ending December 31, 2013, using the fixed cost data provided to improve the accuracy of the percentage of sales method.
Prepare a balance sheet as of December 31, 2013, using the information provided and the critical method. Include an adjusting account for retained earnings (earnings per shareholder). It is necessary to carry out two calculation processes, the first is to prepare a pro forma income statement using the percentage of sales method

IT HAS A VARIABLE COST FOR THE YEAR 2012 OF 1.7%
Review these financial statements and comment on the resulting external funding required.

Data:
Projected sales are $ 6,000,000. In 2012, sales were $ 5,607,476.64 due to a probable growth of 7%.

Costs of goods sold in 2012 include $ 1,000,000 in fixed costs.

Operating expenses in 2012 include $ 250,000 in fixed costs.

Interest expense is $ 5,000 and remains unchanged.

The company will pay cash dividends in an amount equal to 40% of net profit after taxes.

Inventories are $ 910,000; cash is $ 37,020 and will double.

Marketable securities are $ 100,000, Notes payable are $ 75,000, Long-term debt is $ 500,000, Common shares are $ 100,000 and will remain unchanged.

Accounts receivable are $ 400,000, accounts payable are $ 250,000, other current liabilities are $ 40,000 and will remain unchanged.

During the year a new computer system will be purchased at a cost of $ 356,000. The total depreciation expenses during the year will be $ 110,000.

The tax rate will remain at 40%.

Answer rating: 100% (QA)

Solufon PNOI According to data Now We Prepare an income s... View the full answer