For questions 1 to 7, please use the following projections for Top-A1 Inc.: Total sales of $150,000

Question:

For questions 1 to 7, please use the following projections for Top-A1 Inc.:

Total sales of $150,000

Cost of goods sold equal to 76 percent of sales

Total expenses equal to 14 percent of sales

Tax rate of 35 percent

Beginning equity of $50,000

Beginning inventory of $12,000

Age of ending inventory of 60 days

Minimum cash balance of $10,000

Accounts receivable of 30 days

Fixed assets of $60,000

Accounts payable of 35 days

Calculate the projected gross profit for Top-A1.

Calculate the projected purchases for Top-A1.

Create an entire pro forma income statement for Top-A1. Be sure to calculate the projected net earnings.

Assume Top-A1 has a dividend payout of 40 percent. Calculate the projected change in retained earnings for Top-A1.

Calculate the projected accounts receivable for Top-A1.

Calculate the projected accounts payable for Top-A1.

Create a pro forma balance sheet. Calculate the long-term debt as the balancing amount.

Ending Inventory
The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula Ending Inventory Formula =... Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive... Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...