The Starlight, Inc., financial statements for the fiscal year ended June 30, 2011, are presented below. The firm’s sales are projected to grow at a rate of 20 percent next year, and all financial statement accounts will vary directly with sales. Based on that projection, develop a pro forma balance sheet and income statement for the fiscal year ending June 30, 2012.

  

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Starlight, Inc. Balance Sheet as of June 30, 2011 Assets: Cash Accounts receivables $25, 135 43, 758 Inventories 167, 112 Total current assets $236, 005 Net fixed assets 325, 422 Other assets 13, 125 Total assets $574, 552 LiabilitiesandStockholders'Equity : Account payables Notes payables Total current liabilities Long-term debt Common stock Retained earnings Total liabilities and equity $67,855 36, 454 $104, 309 223, 125 150,000 97, 118 $574, 552 Starlight, Inc. Balance Sheet as of June 30, 2011 Assets: Cash Accounts receivables $25, 135 43, 758 Inventories 167, 112 Total current assets $236, 005 Net fixed assets 325, 422 Other assets 13, 125 Total assets $574, 552 LiabilitiesandStockholders'Equity : Account payables Notes payables Total current liabilities Long-term debt Common stock Retained earnings Total liabilities and equity $67,855 36, 454 $104, 309 223, 125 150,000 97, 118 $574, 552

Answer rating: 100% (QA)

The pro forma income statement is the same as that shown in the s... View the full answer