Using Lemon Spa & Herbal Products financial statements below, you are to identify Pro Forma Statements of
Question:
Using Lemon Spa & Herbal Products financial statements below, you are to identify Pro Forma Statements of Year 20x4E. Assumptions for Pro Forma are as follows:
· A company will grow by 30.00% in year 20x4E.
· Dividends payout ratio remains at 40% from its net income.
· Any additional funds needed will be financed 15% with Line of credit, and another 85% will be proposed for 5-year bank loan. No long-term bonds or common stock will be issued.
Balance Sheet for December 31, 20x3 ($ in thousands) | Pro Forma | ||
Yr 20x2 | Yr 20x3 | Yr 20x4E | |
ASSETS | |||
Cash | 5,600.00 | 10,700.00 |
|
Marketable securities | 51,900.00 | 6,130.00 | 35,000.00 |
Accounts receivables | 65,200.00 | 69,750.00 |
|
Inventories | 121,400.00 | 169,100.00 |
|
Total current assets | 244,100.00 | 255,680.00 |
|
Net plant and equipment | 575,000.00 | 605,000.00 | 645,000.00 |
Total assets | 819,100.00 | 860,680.00 |
|
LIABILITIES & EQUITY | |||
Accounts payable | 17,200.00 | 20,170.00 |
|
Line of credit | - | - |
|
Notes payable & Short-term borrowing | 80,600.00 | 83,540.00 |
|
Accruals | 31,100.00 | 44,960.00 |
|
Total current liabilities | 128,900.00 | 148,670.00 |
|
Long-term bonds | 248,200.00 | 253,500.00 |
|
Long-term bank loan | 117,100.00 | 122,360.00 |
|
Common stock (par plus paid in capital) | 160,000.00 | 160,000.00 | 160,000.00 |
Retained earnings | 164,900.00 | 176,150.00 |
|
Common equity | 324,900.00 | 336,150.00 |
|
Total liabilities and equity | 819,100.00 | 860,680.00 |
|
Expert Answer:
Net Sales of 20X4 Net Sales of 20X3 130 since 30 growth Operating cost of 20X4 Operati... View the full answer
