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PRO FORMA BALANCE SHEET, YEAR-END 2001

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The following tables contain financial statements for Dynastatics Corporation. Although the company has not been growing, it now plans to expand and will increase net fixed assets (that is assets net of depreciation) by $200 per year for the next 5 years and forecasts that the ratio of revenues to total assets will remain at 1.5. Annual depreciation is 10 percent of net fixed assets at the start of the year. Fixed costs are expected to remain at $56 and variable costs at 80 percent of revenue. The company's policy is to pay out two-thirds of net income as dividends and to maintain a book debt ratio of 25 percent of total capital.
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The following tables contain financial statements for Dynastatics Corporation. Although the company has not been growing, it ...

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