b. Prepare a pro forma balance sheet for next year, using the information given and the judgmental approach. Include a reconciliation of the retained earnings account.

A mathxl.com 16 Content Do Homework - Assignment 2 Get Homework Help With Chegg Study | Chegg... B. Prepare A Pro Forma Balance Sheet For Ne... B. Prepare A Pro Forma Balance Sheet For Ne... + 2020-1 ITF 311 - Business Finance 3 CEM_SMA_L AKKO : 01/10/21 4:36 PM Homework: Assignment 2 Save Score: 13.28 of 35 pts 4 of 4 (4 complete) HW Score: 74.16%, 74.16 of 100 pts %x P4-21 (similar to) Data Table will remain Integrative-Pro forma statements Provincial Imports, Inc., has assembled last year's financial statements (income statement and bal Information related to financial projections for next year is as follows: (1) Projected sales are $5,991,000. (2) Cost of goods sold last year includes $999,000 in fixed costs. (3) Operating expense last year includes $259,000 in fixed costs. (4) Interest expense will unchanged. (5) The firm will pay cash dividends amounting to 45% of net profits after taxes. (6) Cash and inventories will double. (7) Marketable securities, notes payable, long-term debt, and common stock will remain unchanged. (8) Accounts receivable, accounts payable, and other current liabilities will change in direct response to the change in sales. (9) A new computer system costing $354,000 will be purchased during the year. Total depreciation expense for the year will be $107,000. (10) The tax rate will remain at 40%. a. Prepare a pro forma income statement for next year, using the fixed cost data given to improve the accuracy of the percent-of-sales me h Prepare a pro forma balance sheet for next vear using the information given and the judamental approach include a reconciliation of th Complete the assets part of the pro forma balance sheet for next year: (Round to the nearest dollar.) for the Year Just Ended Sales revenue Less: Cost of goods sold Gross profits Less: Operating expenses Operating profits Less: Interest expense Net profits before taxes Less: Taxes (rate = 40%) Net profits after taxes Less: Cash dividends To retained earnings $4,999,000 2,746,000 $2,253,000 850,000 $1,403,000 200,000 $1,203,000 481,200 $721,800 324,810 $396,990 Pro Forma Balance Sheet (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Provincial Imports, Inc. for Next Year (Judgmental Method) Cash Marketable securities Accounts receivable Assets Cash Marketable securities Accounts receivable Inventories Total current assets Net fixed assets Provincial Imports, Inc. Balance Sheet for the Year Just Ended Liabilities and Stockholders' Equity $208,000 Accounts payable $697,000 231,000 Taxes payable 95,000 619,000 Notes payable 203,000 504,000 Other current liabilities $1,562,000 Total current liabilities $1,000,400 1,391,000 Long-term debt 512,600 Common stock 72,000 Retained earnings 1,368,000 $2,953,000 Total liabilities and equity $2,953,000 5,400 Inventories Total current assets $ Net fixed assets Total assets Total assets Enter any number in the edit fields and then click Check Answer. Print Done parts Clear All Check Answer remaining