Question: Prepare a pro forma income statement and balance sheet for Anderson Company Iot 20, usm% the following assumptions: Sales are expected to grow by 25%.
Prepare a pro forma income statement and balance sheet for Anderson Company Iot 20\\, usm% the following assumptions: Sales are expected to grow by 25%. Income statement expenses are a constant percent of revenues except interest, which remains the same and income taxes, which are 40% of income before tax. Cash remains the same and the remaining assets increase in proportion to sales for 2010. Accounts payable increases in proportion to sales. Owners ' equity increases by net income in 2011. There are no dividends. Long-term debt remains the same, short-term debt changes to balance the balance sheet. Prepare a pro forma income statement and balance sheet for Anderson Company Iot 20\\, usm% the following assumptions: Sales are expected to grow by 25%. Income statement expenses are a constant percent of revenues except interest, which remains the same and income taxes, which are 40% of income before tax. Cash remains the same and the remaining assets increase in proportion to sales for 2010. Accounts payable increases in proportion to sales. Owners ' equity increases by net income in 2011. There are no dividends. Long-term debt remains the same, short-term debt changes to balance the balance sheet
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
