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Pro Forma Analysis

INCOME STATEMENT:
Sales 2000,000
Costs except depreciation (100,000)
--------------------------------------------------
EBITA 100,000
Depreciation (6,000)
--------------------------------------------------
EBIT 94,000
Inter Expense (net) (400)
---------------------------------------------------
Pretax income 93,600
Income Tax (32,760)
----------------------------------------------------
Net Income 60,840

BALANCE SHEET:

Assets
Cash and equivalents 15,000
Accounts Receivable 2,000
Inventories 4,000
_______________________________
Total Current Assets 21,000
Property, plant and equipment 10,000
________________________________
Total Assets 31,000

Liabilities and Equity
Accounts Payable 1,500
Debt 4000
_______________________________
Total liabilities 5,500
Stockholders' Equity 25,500
Total Liabilities and Equity 31,000

(ANSWER THE QUESTIONS BELOW USING EXCEL)
(USE THE DATA FROM ABOVE)

1) Jim's expects sales to grow by 10%. Using the Percent of sales method forecast.
a. costs
b. Depreciation
c. Net Income
d. Cash
e. Accounts receivable
f. inventory
g. Property, plant and equipment

2) Assume that Jim's pays out 90% of its net income. Use the percent of sales method to forecast:
a. Stockholder's equity
b. Accounts Payable

3) What is the amount of net new financing needed for Jim's?

Solution Preview

NCOME STATEMENT:
Sales 2000,000
Costs except depreciation (100,000)
--------------------------------------------------
EBITA 100,000
Depreciation (6,000)
--------------------------------------------------
EBIT 94,000
Inter Expense (net) (400)
---------------------------------------------------
Pretax ...

Solution Summary

Solution helps in preparing Pro Forma Analysis

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