Victory Co. is expected to see their next year's sales rise up from $200,000 to $240,000. The
Question:
Victory Co. is expected to see their next year's sales rise up from $200,000 to $240,000. The CFO is using pro forma statements to project the company's funding needs. He has completed pro forma income statement, and predicted that the net income next year will be $35,000 and the increase in retained earnings will be $10,000. The CFO is now working on the pro forma balance sheet. He only has several accounts left without the estimated numbers. You are asked to finish the CFO's pro forma balance sheet by filling out the blanks and find if the business needs additional funding next year. Assume all assets, accounts payable and accruals are changing with the sales level. The company plans to make no change in its common stock. (To earn ANY credit, you MUST SHOW YOUR WORK in each calculation.)
Fundamental Managerial Accounting Concepts
ISBN: 978-0078110894
6th Edition
Authors: Edmonds, Tsay, olds