Iestion list

Question $1$

Question $2$

Question $3$

Question $4$

Question $5$

Question $6$

Question $7$

Question $8$

Help me solve this

Pro forma income statement The marketing department of Metroline Manufacturing estimates that its sales next year will be $$1\mathrm{.}69$ million. Interest expense is expected to remain unchanged at $$36,000,$ and the firm plans to pay $$70,000$ in cash dividends. Metroline Manufacturing's income statement for the previous year is given $,$ along with a breakdown of the firm's cost of goods sold and operating expenses into their fixed and variable components.

a$.$ Use the percent$-$of$-$sales method to prepare a pro forma income statement for next year.

b$.$ Use fixed and variable cost data to develop a pro forma income statement for next year.

c$.$ Compare and contrast the statements developed in parts $a.$ and $b.$ Which statement probably provides the better estimate of income? Explain why.

Complete the pro forma income statement for the year ended December $31,2020$ below: $($Round the percentage of sales to four decimal places and the pro forma income statement amounts to the nearest dollar.$)$

Pro Forma Income Statement

Metroline Manufacturing, Inc.

for the Year Ended December $31,2020$

$($percent$-$of$-$sales method$)$

Sales

Less: Cost of goods sold

Gross profits

Less: Operating expenses

Operating profits

Less: Interest expense

Net profits before taxes

Less: Taxes

Net profits after taxes

Less: Cash dividends

To retained earnings

gathered.

$(1)$ A minimum cash balance of $$49,800$ is desired.

$(2)$ Marketable securities will remain unchanged.

$(3)$ Accounts receivable represent $9\mathrm{.}8\%$ of sales.

$(4)$ Inventories represent $12\mathrm{.}2\%$ of sales.

$(5)$ Leonard will acquire a new machine costing $$90,300.$ Total depreciation for the year will be $$32,000.$

$(6)$ Accounts payable represent $14\mathrm{.}3\%$ of sales.

$(7)$ Accruals, other current liabilities, long$-$term debt, and common stock will remain unchanged.

$(8)$ The firm's net profit margin is $3\mathrm{.}9\%,$ and it expects to pay out $$69,600$ in cash dividends next year.

$(9)$ The most recent balance sheet follows $.$

a IIse the ilidrmental annrnach to nrenare a nrn forma halance sheet for next vear

a$.$ Use the judgmental approach to prepare a pro forma balance sheet for Leonard Industries.

Complete the assets part of the pro forma balance sheet for Leonard Industries below: $($Round to the nearest dollar.$)$

Pro Forma Balance Sheet

Leonard Industries

Assets

Current assets

Cash

$

Marketable securities

Accounts receivable

Inventories

Total current assets

$

Net fixed assets

Total assets

$