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    Pro Forma for Dell Company

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    Based on the financial statement in the annual report for Dell company, develop a set of pro forma financials (income statement and balance sheet only) for the next fiscal year-end using the percent-of-sales method. Assume that the Dell's sales have increased by 15%.

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    Based on the financial statement in the annual report for Dell company, develop a set of pro forma financials (income statement and balance sheet only) for the next fiscal year-end using the percent-of-sales method. Assume that the Dell's sales have increased by 15%.

    First, sales are expected to be increased by 15%. The forecasted sales would be 55,908,000 x 1.15 = 64,294,200.

    Then, we will forecast some items to be affected by sales as a percent of the forecasted sales.

    2005 Projected 2006
    Cost of Revenue/Sales 45,958,000/55,908,000 = 82.20 82.20
    SGA/Sales 5,140,000/55,908,000 = 9.19 9.19
    Cash/Sales 7,042,000/55,908,000 = 12.60 12.60
    Accounts Receivable/Sales 5,452,000/55,908,000 = 9.75 9.75
    Inventory/Sales 576,000/55,908,000 = 1.03 1.03
    Net Fixed Assets/Sales 2,005,000/55,908,000 = 3.59 3.59
    Accounts Payable/Sales 10,657,000/55,908,000 = 19.06 19.06

    Then, we will multiply them with the forecasted sales.

    Tax Rate 21.90
    Dividend Payout Ratio 0

    In the income statement, research ...

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