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    Pro Forma Analysis

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    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?

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    https://brainmass.com/business/pro-forma-financial-statements/pro-forma-analysis-461009

    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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