Garlington Technologies Inc.’s 2004 financial statements are sho

Garlington Technologies Inc.'s 2004 financial statements are shown below. Garlington Technologies Inc.: Balance Sheet as of December 31, 2004

Garlington Technologies Inc.’s 2004 financial statements  are sho

Suppose that in 2005 sales increase by 10 percent over 2004 sales and that 2005 dividends will increase to $112,000. Construct the pro forma financial statements using the percent of sales method. Assume the firm operated at full capacity in 2004. Use an interest rate of 13 percent on the debt balance at the beginning of the year. Assume dividends will grow by 3 percent and that the AFN will be in the form of notes payable.

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...