The Income statement and balance sheet for Central Perks Inc. are provided here. Note that firm's...

  

   

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The Income statement and balance sheet for Central Perks Inc. are provided here. Note that firm's capital expenditures are expected to rise by $50,000 in the new year. This will lead to an increase of $5,000 in depreciation expense from 2019. Sales next year should be $4,407,500, and the dividend payment to common stockholders will equal the dividend payment in 2019. Cost of Goods Sold, S,G&A Expense, Interest Expense, Accounts Receivable, Inventory, Accounts Payable, and Other Current Liabilities will vary with sales. Cash, Notes Payable, Long-Term Debt, and Common Stock will remain the same as in 2019. 1. Using the information given and percentage of sales analysis techniques where appropriate, prepare a pro forma income statement and balance sheet for the next year. Since both 2018 and 2019 financial statements are given, use the average percentage of sales from both years. Calculate the amount of financing needed for the balance sheet. 2. Create a chart of sales by year for all years, including your pro forma estimate. 3. Add a trend line. 4. Create a scatter plot of sales vs. cogs. Add a trend line. 5. Regress cogs against sales (do not include the 2010 estimates). 6. Using your sales trendline and annual sales data forecast the sales level in the next 3 years (3 years after the year with 4.3M in sales). Forecast using the trend line as well as at least one of the following: trend, linest, regression. The Income statement and balance sheet for Central Perks Inc. are provided here. Note that firm's capital expenditures are expected to rise by $50,000 in the new year. This will lead to an increase of $5,000 in depreciation expense from 2019. Sales next year should be $4,407,500, and the dividend payment to common stockholders will equal the dividend payment in 2019. Cost of Goods Sold, S,G&A Expense, Interest Expense, Accounts Receivable, Inventory, Accounts Payable, and Other Current Liabilities will vary with sales. Cash, Notes Payable, Long-Term Debt, and Common Stock will remain the same as in 2019. 1. Using the information given and percentage of sales analysis techniques where appropriate, prepare a pro forma income statement and balance sheet for the next year. Since both 2018 and 2019 financial statements are given, use the average percentage of sales from both years. Calculate the amount of financing needed for the balance sheet. 2. Create a chart of sales by year for all years, including your pro forma estimate. 3. Add a trend line. 4. Create a scatter plot of sales vs. cogs. Add a trend line. 5. Regress cogs against sales (do not include the 2010 estimates). 6. Using your sales trendline and annual sales data forecast the sales level in the next 3 years (3 years after the year with 4.3M in sales). Forecast using the trend line as well as at least one of the following: trend, linest, regression.

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To prepare a pro forma income statement and balance sheet for the next year well use the average percentage of sales from both 2018 and 2019 Lets calculate the amounts based on the given information 1 ... View the full answer