Case $2$: Using Company financial statements below, you are to identify Pro Forma Statements of Year $20$x$4$E$.$ Assumptions for Pro Forma are as follows:

$1.$ For Pro Forma, GFF Company will grow by $30\mathrm{.}00\%$ in year $20$x$4$E$.$

$2.$ Dividends payout ratio remains at $60\%$ from its net income.

$3.$ Any additional funds needed will be financed $25\%$ with Line of credit, and another $75\%$ will be proposed for $5-$year bank loan. No long$-$term bonds or common stock will be issued.

$4.$ Leave your answer with $2-$digits after decimal point. Do not round up or round down. For example: $541\mathrm{.}53$

Table $1$: Income Statement

Griffon Frozen Food Products

Income Statement for the Year Ending December $31,20$x$3($$ in thousands$)$

Pro Forma

Yr $20$x$2$

Yr $20$x$3$

Yr $20$x$4$E

Net sales $($revenue from sales and others$)$

$1,524,997\mathrm{.}00$

$1,977,918\mathrm{.}00$

Answer

COGS

$981,871\mathrm{.}00$

$1,147,237\mathrm{.}00$

Answer

Selling Gen & Admin Expense

$298,787\mathrm{.}00$

$394,928\mathrm{.}00$

Answer

R & D Expenses

$17,700\mathrm{.}00$

$15,400\mathrm{.}00$

$20,020\mathrm{.}00$

Depreciation

$12,995\mathrm{.}00$

$16,306\mathrm{.}00$

$22,140\mathrm{.}00$

Total operating costs

$1,311,353\mathrm{.}00$

$1,573,871\mathrm{.}00$

Answer

Earnings before interest and tax $($EBIT$)$

$213,644\mathrm{.}00$

$404,047\mathrm{.}00$

Answer

Less interest paid

$73,609\mathrm{.}00$

$87,289\mathrm{.}00$

$94,500\mathrm{.}00$

Earnings before taxes $($EBT$)$

$140,035\mathrm{.}00$

$316,758\mathrm{.}00$

Answer

Corporate Tax $(20\%)$

$28,007\mathrm{.}00$

$63,351\mathrm{.}60$

Answer

Net income available for common shares

$112,028\mathrm{.}00$

$253,406\mathrm{.}40$

Answer

Common dividends

$67,216\mathrm{.}80$

$152,043\mathrm{.}84$

Answer

Addition to retained earnings

$44,811\mathrm{.}20$

$101,362\mathrm{.}56$

Answer

Number of common shares

$100,000$

$100,000$

$100,000$

Table $2$: Balance Sheet

Balance Sheet for December $31,20$x$3($$ in thousands$)$

Pro Forma

Yr $20$x$2$

Yr $20$x$3$

Yr $20$x$4$E

ASSETS

Cash

$246,281\mathrm{.}00$

$262,760\mathrm{.}00$

Answer

Marketable securities

$153,350\mathrm{.}00$

$153,350\mathrm{.}00$

$153,350\mathrm{.}00$

Accounts receivables

$339,740\mathrm{.}00$

$382,387\mathrm{.}00$

Answer

Inventories

$436,172\mathrm{.}00$

$434,896\mathrm{.}00$

Answer

Total current assets

$1,175,543\mathrm{.}00$

$1,233,393\mathrm{.}00$

Answer

Net plant and equipment

$697,997\mathrm{.}00$

$851,497\mathrm{.}00$

$1,106,945\mathrm{.}00$

Total assets

$1,873,540\mathrm{.}00$

$2,084,890\mathrm{.}00$

$2,664,350\mathrm{.}90$

LIABILITIES & EQUITY

Accounts payable

$163,977\mathrm{.}00$

$233,871\mathrm{.}00$

Answer

Line of credit

$-$

$-$

Answer

Notes payable & Short$-$term borrowing

$84,890\mathrm{.}00$

$85,852\mathrm{.}00$

$85,852\mathrm{.}00$

Accruals

$73,846\mathrm{.}00$

$105,590\mathrm{.}00$

Answer

Total current liabilities

$322,713\mathrm{.}00$

$425,313\mathrm{.}00$

Answer

Long$-$term bonds

$795,850\mathrm{.}00$

$880,768\mathrm{.}00$

Answer

Long$-$term bank loan

$171,100\mathrm{.}00$

$124,486\mathrm{.}00$

Answer

Common stock $($par plus paid in capital$)$

$103,800\mathrm{.}00$

$103,800\mathrm{.}00$

$103,800\mathrm{.}00$

Retained earnings

$480,347\mathrm{.}00$

$550,523\mathrm{.}00$

Answer

Common equity

$584,147\mathrm{.}00$

$654,323\mathrm{.}00$

Answer

Total liabilities and equity

$1,873,540\mathrm{.}00$

$2,084,890\mathrm{.}00$

Answer