Question: A company is preparing a proforma balance sheet. The company forecast $10 million in projected sales. The projected cash needed 6% of sales, accounts receivalbe

A company is preparing a proforma balance sheet. The company forecast $10 million in projected sales. The projected cash needed 6% of sales, accounts receivalbe are 19% of sales, and PP&E are 50% of sales. Accounts payable has been 12% of sales, historically shareholders equity is 1.5 million. Pro forma income is $3.6 million. The company has no long term debt. What is the total discretionary amount for the pro forma balance sheet?

Step by Step Solution

★★★★★

3.32 Rating (161 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

First we calculate project values of assets and liabilities projected ... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Pro forma balance sheet Peabody & Peabody has 2015 sales of $10 million. It wishes to analyze expected performance and financing needs for 2017, which is 2 years ahead. Given the following...

Table shows the December 31, 2012, pro forma balance sheet and income statements for R&E Supplies, Inc. The pro forma balance sheet shows that R&E Supplies will need external funding from the bank of...

A company is preparing for a cycle count of its inventory. The companys ERP inventory report showed the following values for the products under review. Which items would you classify as being A...

Under current U.S . GAAP, Johnson & Johnson includes on its balance sheet the net funded status of its retirement plans. Consider the balance sheet effects of instead including the gross assets of...

Instruction Refer to the extracts from Footlocker's Annual Report included in the exam maten'als for answering questions in this section. You shall treat Question 9 and Question 10 as independent...

CHAPTER 12 Valuation Cash-Flow-s peeches me i n Exhibits 12.17 12 10 12 14 inchide the actual amounts for fiscal 2015 and the projected amounts for Year 1 to Years for the income statements, balance...

Financial Statement Attached. Also link to article http://www.wsj.com/articles/pension-funds-pile-on-the-risk-just-to-get-a-reasonable-return-1464713013 Assignment #2 Solution should be uploaded in a...

ning (Proforma Construction) (30 points) Suppose, you were hired by GEM, Inc., to assist the company with its financial planning and to evaluate the company's performance. Your supervisor provides...

I need help with this whole thing... 1 PREPARING FINANCIAL STATEMENTS FOR THE MONTH OF JANUARY 3 ASSUME ALL OF THE BUSINESS TRANSACTONS OCCURRED IN 4 IN JANUARY, 2019 6 CREATE JOURNAL ENTRIES FOR THE...

Exercises: K, L, and M 1. il j. Consider Johnson & Johnson's "Other benefits" plans, as detailed on page 62 of the company's on the company's balance sheet? annual report What is the total obligation...

A realtor is interested in assessing the impact of size (in square feet) and distance from the center of town (in miles) on the value of homes (in thousands of dollars) in a certain area. Nine...

58. Alcohol is used in manometers because (a) it has low vapour pressure (b) it is clearly visible (c) it has low surface tension (d) it can provide longer column due to low density (e) is provides...

QUESTION 2 5 - 1 POINT Determine lim x 3 f ( x ) given the definition of f ( x ) below. ( if the limit does not exist, enter O ? . ) f ( x ) = { - x 2 - x 3 i f x 1 x 2 x 2 i f 1 3

Assume that a plant has two categories of overhead material handling and quality inspection. The costs expected for these categories for the coming year are as follows. Material handling $100,000...

Write a program that calculates the equivalent resistance of the following circuit where R1=5.5 ohm, R2=3.7 ohm and R3=9.8 ohm. Hint: Use the concept of functions declaration and prototypes RI R2 R3

15. The magnetic field B at a distance r from a long, straight conductor carrying a current / has a magnitude 4,1 B = B= 2r (c) (a) %3D B = (b) 2 %3D (d) None 16. Two parallel current attract each...

Bailey Corporation's financial statements (dollars and shares are in millions) are provided here. Balance Sheets as of December 31 2014 2013 Assets Cash and equivalents $ 15,000 $ 14,000 Accounts...

In June 2022, Enrique and Denisse Espinosa traveled to Denver to attend a three-day conference sponsored by the American Society of Implant Dentistry. Denisse, a self-employed practicing oral...

Two areas of vulnerability for the lender occur when homeowners insurance is allowed to lapse. What are they? Unset starred question Code enforcement and property damage Liability and deed recording...

Hi, Can you help me with these three assignments. Thanks FINANCIAL AND MANAGERIAL ACCOUNTING - Fifth Edition E13-19 Requirements 1. Journalize the transactions. Explanations are not required. 2. How...

Homework Question - Prepare an analysis of a casefrom Chapter 5, page # 121, '' A Wolf In Sheeps Clothing '' (no more than 2 or 3 pages, double spaced). And give an answer on following: - A summary...

I just need 10,11 what You need now? that is all the information you can do it from number 1 10,11 10. Prepare a budgeted income statement Royal reported the following account balances prior to...

116 X V A B C D E F G H MASTER BUDGET AND CASH BUDGET FINAL EXAM 2 3 BABYENA Company is preparing budgets for the quarter ending June 30. 5 Budgeted sales APRIL MAY JUNE TOTAL 6 APRIL 10,000.00...

To demonstrate your understanding of the master budget and all of the supporting budgets, use the data set provided below to complete a comprehensive budget problem for the MORRISSEY Company. Submit...

Milo Company manufactures beach umbrellas. The company is preparing detailed budgets for the third quarter and has assembled the following information to assist in the budget preparation: a. The...