fin 310 chapter 5 open ended

please provide reasoning on answers

Chapier 5 Cpes-Ended Asuigaiseet Reyeired skithe be tarn, Back 310 Chapter 5 Open-Ended.xisx 6:54 Back 310 Chapter 5 Open-Ended.xisx apentinewes inam: eryulwery B. Pvgure the 2021 fro-furina bulatse shov fie ABC Cuefoention. Your answers to this open-ended assignment should be placed in the space below this line. A sBC Cerperafine Frudarma lnceme Statrmon! Fer the Vear inded ther. 11 . 2021 Sules Cent of gosde suld dinus peolir Cash ipwratiag aspewer Depceciufien Tueal eperatieg evpmess Eamitys before isierrat and lave Inereur rupene Fartirge hefone tawes Incums tas expenap Vis minese H ABx' Cepperatine Preferma mulanes bust Dec. 31, 2021 Cad Shentern lesretmwin Aryune roveiralie lromery fiend weache. Net Teded awesh Accuenis reyalle Aorrud blabe Arad proyale Lutrmat frumsies aned. Cierrus aloci Rimed ealaing Teal hedaldirs A eveity CD Dashboard Calendar ar 34 To Do Notifications In box Chapter 5 Opea-Ended Assignment Note: Please put your answers only in the section below the Bold Red sentence at the end of the Required section below. ABC Corporation published the following infonmation in its financial statements for its 2020 annual report: ABC Corporation Income Statement For the Year ended Dec. 31, 2020 Sales Cost of goods sold Gross profit Cash operatiag expenses Depreciation Total operating expenses Farnings before interest and taxes Interest expense Farmings before taxes Income tax expense Ner income \begin{tabular}{|l|l|} \hline 80,000 & \\ \hline 50,000 & \\ \hline 9,000 & \\ \hline 3,000 & \\ \hline & 18,00012,000 \\ \hline & 17,280720 \\ \hline & 5,356.8 \\ \hline & \\ \hline \end{tabular} ABC Cerperation Balance Sheet Dec. 31, 2020 Cash Shatiterm Investments Arcounts receivable Invensory Fixd assets, net Teal akets Account puyable Accrud liabilitiss Beeds payable Coenmon steck Retained carming Tocal liabilitics \& aity 9.000 5,000 12,000 10.000 24,000 60,00024,000 8,000 3,000 12.000 22,000 60,00015,000 Additional Information 1. Sales in 2021 are estimated to be $104,000. 2. Cist of goods sold are considered to be variable costs. 3. 55,000 of the cash operating expenses for 2020 are considkrod variable costs, and the remainder are fixod costs. 4. Depreciation is, of swame, considered to be a fived cost. 5. Cash, actouns rocevivale, invenories, actouns payable, and acerued payables are eonsidered to be pontancous items. 6. Short term investments, net fised assets, bonds payable, and commson stock are discretionary. 7. $5,000 of bends payable at the end of 2020 are considered "currem liablities, "and will be erpaid ee January 1,2021 . The intercst rate on the bonds for 2021 will remain the same as it was in 2020 . Common stock Retaincd carmings Total liabilitics \& equity 22,000 15,000 60.000 Additional Iaformation 1. Sales in 2021 are evimated to he 5104,000 . 2. Cost of goxds sold are considered to be variable costs. 3. 55,000 of the cash operating expenses for 2020 are considered variahle costs, and the rmainder ane fivod costs. 4. Depreciatice is, of course, comsidered to be a fised cont. 5. Cash, accounts roceivable, imventcries, wcocunts payable, and mocruod payables are consaderod io be spontancous items. 6. Short-eerm investments, net focd assets, bonds payable, and comumon sock are discretionary 7. $5,000 of bonds payable at the cod of 2020 are considered "curnent liabilities," and will be repaid on lanuary 1, 2021. The indcrest rate on the bonds for 2021 will remain the same as it was in 2000 8. The company will purchase fixcd asscts of $3,600 in 2021 , but overall depeociation for 2021 will remain the same dellar amount as it was for 2020. 9. The firm paid a dividend of $4,000 in 2020, and witl maimtain its 2020 dividend payout meio fee 2021. 10. The inceene tax rate for 2021 is expected to be the sarec as it was in 2020 Reywired: A. Pripare the 2021 pro-forma income statemeat for ABC Comoration. B. Prepare the 2021 pro-forma balance sheet for ABC Compoeation. Your answers to this open-ended assignment should be placed in the space below this line. A Sales Cost of goods sold Gross profit Cash operating expetses Depreciation Total operating expenses Earnings before interest and taves Interest expetse Earnings before taxes Income tax expense Net income AHC. Cerporatien Froforma Income Statement Fer the Vear ended Dec. 31, 2021 B Required: A. Prepare the 2021 pro-forma income statement for ABC Corporation. B. Prepare the 2021 pro-forma balance shect for ABC Corporation. Your answers to this open-ended assignment should be placed in the space below this line. A A ABC Corporation Proforma Inceme Statement For the Year ended Dee. 31, 2021 Sales Cost of goods sold Gross profit Cash operating expenses Depreciation Total operating expenses Earnings before interest and taxes Interest expense Earnings before taxes Income tax expensc Net income B ABC Corperation Pro-forma Balance Sheet Dec, 31, 2021 Cash Short-term Investments Accounts receivable Isventory Fixed assets, net Total assets Accounts payable Acerued liabilitics Bonds payable Extemal financing needs Common stock Retained earnings Total liabilities \& equity