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The firm has estimated that its sales for 2 0 1 3 will be $ 8 4 6 , 7 5 6 Cash dividends to
The firm has estimated that its sales for will be $
Cash dividends to be paid by the firm in $
Minimum cash balance to be maintained by the firm $
Accounts receivable percentage of sales
The firm's ending inventory will change directly with changes in sales in
A new machine purchased in will cost $
Total depreciation for will be $
Accounts payable will change directly in response to changes in sales in
Taxes payable will equal onefourth of the tax expense on the pro forma income statement
Marketable securities other current liabilities, longterm debt, and common stock will remain unchanged.
Tenley Inc. Tenley Inc.
Income Statement Balance Sheet
For the year ended December December
Sales revenue $ Assets Liabilities and Stockholder's Equity
Less: Cost of goods sold Cash $ Accounts payable $
Gross profits $ Marketable securities Taxes payable
Less: Operating expenses Accounts receivable Other current liabilities
Net profit before taxes $ Inventories Total current liabilities $
Less: Taxes rate Total current assets $ Longterm debt
Net profit after taxes $ Net fixed assets Total liabilities $
Total assets $ Common stock
Less: Cash dividends Retained earnings
To retained earnings $ Total liabilities and stockholder's equity $
Prepare a proforma income statement for the year ended December using the percentofsales method.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
ProForma Income Statement for Tenley Inc Year Ended December 31 2013 PercentofSales Method Sales Revenue 8467560 Less Cost of Goods Sold Estimated as of Sales Historical Cost of Goods Sold Sales 2012 ...
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Step: 2
Step: 3
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