['ro Forma Homework =3 Fall 2024 (1.5 points) Pro Forma Position Statement Common tender price (Not relevant, nothing tendered) Consider the following Pro Forma inputs given the current initial (first round) settings. (You Quarter Number 2 may have noticed that these settings differ slightly from those described i the manual and Value how found? electronic reserves.) You may wish to save these settings. Pro Forma attempts to determine the second round result given the inputs specified below. As with the first and second assignment, ASSETS this third assignment, try to fill in the blanks, as shown on page 2. You'll want to specify a Current Assets number, but also explain how you got it. Far and away the hardest part of this third homework Cash $ is the cash balance. Do not be discouraged. Do your best. Marketable Securities Accounts Receivable _ Pro Forma Decision Sheet for Quarter 2 (inputs) Inventory ( _ unitsat_ /UNIT) Units Pro Forma Decision Sheet for Quarter 2 Value per unit _ Units demanded 108000 Sum 7 Short term investments 1.00% Total Current Assets Short term loan 1.50% Three-year loan 2.50% Fixed Assets (net of depreciation Preferred stock yield 3.00% Machinery Capital gains rate (Not relevant) and Equipment (projects) Two year loan 2.00% Plant Long-term loan 3.00% Total Fixed Assets Company Operating Decisions Number of units to produce 100000 Total Assets Per unit price $92.00 Dividends per share of common stock $0.15 Advertising costs per period $0 Demand/price forecast Free Sales discount None New Investment Decisions Short-term investment $400,000 Risk of short-term investment 0 Units of machinery purchased 0 Units of plant purchased 0 Capital budgeting project A no Capital budgeting project B no Fmancing Decisions DEBT: Short-term loans $0 Two-year loans $0 Three-year loans $0 Ten-vear bonds $0 EQUITY: Preferred shares 0 Common shares 0 Market Forecasts Units Demanded 100, 000 Two-year loans rate 5. 009 Short-term investment rate 10. 00% Three year loan rate 5. 00% Capital gains rate 10. 00% Long-term loan rate 5. 00% Short-term loans rate 5. 00% Preferred stock yield 5. 00% Company Operating Decisions: Pro Forma Units to be produced 100, 000 Per unit price $200. 00 Div. per common share $0. 64 Advertising cost $100 Demand/price forecast Sales discount 0. 00% Investment Decisions: Pro Forma Short-term investment $100, 000 Risk of S-T investment Machine units bought 500 Inits of plant bought 500 Project A no Project B no Financing Decisions: Pro Forma Short-term loans $0 Preferred shares Two-year loans Common shares Three-year loans SO Common tender price Ten-year bonds SO Special Options: Pro Forma Strike settlement (per hr. ) 0. 00 Dollar penalty Pro Forma Performance Report Quarter Number 2 Sales revenue ( 100, 000 units at $200. 00 ) $20, 000, 000 Income from securities 60, 000 $20, 060, 000 Cost of Goods Sold Beginning Inventory: ( 17, 280 at $62. 94 ) $1, 087, 533 Materials $600, 000 Direct Labor 3. 500. 000 Total Direct Costs $4, 100, 000 Warehousing Costs $99, 240 Depreciation: Mach. and Equip. 478, 125 Plant 1, 300, 000 Other Overhead Costs 200. 000 Total Indirect Costs 2. 077. 365 Production Costs ( 100, 000 at $61. 77 ) 6. 177. 365 Goods Available for Sale ( $61. 94 per unit ) $7, 264, 898 Less: Ending Inventory ( 17, 280 units ) 1. 070. 408 Cost of Goods Sold 6. 194. 490 Gross Profit $13, 865, 509 Selling and administrative expenses $2, 000, 100 Financial Expenses: Short Term Bank Interest SO Penalty Loan Interest Intermediate Term Loan Interest 83, 030 Bond Interest 33, 600 Bond Redemption Costs Total Financial Charges 116, 630 2, 116, 730 Operating Income Before Extraordinary Items $11, 748, 780 Extraordinary Items 0 Income Before Taxes $11, 748, 779 Income Tax (rate is 30%) 3. 524.633 Income After Taxes $8, 224, 146 Preferred Stock Dividind Earnings to Common Stockholders $8, 224, 146 Common Stock Dividends ( $0. 64 per share) 640. 000 Net Income Transferred to Retained Earnings $7. 584, 146 Pro Forma Position Statement Quarter Number 2 ASSETS Current Assets Cash $1, 339, 626 Marketable Securities 330, 000 Accounts Receivable 13, 400, 000 Inventory ( 17, 280 units at $61. 94 /UNIT ) 1, 070, 408 Windows Total Current Assets #FI" O'DELL Windows$16, 140, 033 Fixed Assets (net of depreciation Machinery and Equipment $1, 548, 000 Plant 6. 238, 750Intermediate Term Loan Interest 83, 030 Bond Interest 83, 600 Bond Redemption Costs Total Financial Charges 116. 630 2. 116, 730 Operating Income Before Extraordinary Items $11, 748, 780 Extraordinary Items 0 Income Before Taxes $11, 748, 779 Income Tax (rate is 30%) 3. 524. 633 Income After Taxes $8, 224, 146 Preferred Stock Dividind 0 Earnings to Common Stockholders $8, 224, 146 Common Stock Dividends ( $0. 64 per share ) 640. 000 Net Income Transferred to Retained Earnings $7. 584, 146 Pro Forma Position Statement Quarter Number 2 ASSETS Current Assets Cash $1, 339, 626 Marketable Securities 330, 000 Accounts Receivable 3, 400, 000 Inventory ( 17, 280 units at $61. 94 /UNIT ) 1. 070. 408 Total Current Assets $16, 140, 033 Fixed Assets (net of depreciation Machinery and Equipment $1, 548, 000 Plant 6. 238, 750 Total Fixed Asset 7. 786. 750 Total Assets $23, 926, 783 LIABILITIES AND OWNER EQUITY Current Liabilities accounts Payable $430, 000 Short Term Loans Payable Short Term Penalty Loan Intermediate Term Debt Maturing 1, 550, 000 Bonds Maturing 1. 200, 000 Total Current Liabilities $3, 180, 000 long Term Liabilities Intermediate Loans: 2 years $625, 000 3 years Bonds 900. 000 Total Long Term Liabilities 1, 525, 000 Total Liabilities $4, 705, 000 Owners' Equity Preferred Stock ( 0 shares ) SO Common Stock ( 1, 000, 000 shares ) 8, 000, 000 Retained Earnings 11, 221, 783 Total Equity 19. 221. 782 Total Liabilities and Equity $23, 926, 783 INFORMATION FOR FUTURE QUARTERS: Units of plant capacity 100, 000 100, 500 80, 500 50, 500 Units of machine capacity 100, 500 75, 500 60, 500 60, 500 Other overhead 200, 000 200, 000 200, 000 200, 000 Depreciation: Machinery 180, 375 386, 625 313, 500 313, 500 Projects 0 0 0 0 Plant 1, 300, 000 1, 318, 675 1, 007, 675 686, 175 Principal repayment on debt: Short-term 0 0 2-year 312, 500 312, 500 312, 500 312, 500 3-year 300, 000 Bonds 300, 000 300, 000 300, 000 300, 000 Warehouse fees: Units First 2000 Next 5000 Over 7000 Cost/Unit $1. 00 $3. 00 $8. 00 Production costs per unit next quarter: Windows Materials $6. 00 Machinery $47. 00 Plant 46 41"19"$321:100 Windows. Inits First 60, 000 Next 40, 000 Next 20, 000 Over 120, 000 Labor cost $39. 00 $29. 00 $25. 00 $33. 00