the pro forma balance sheet still has to be completed. The following information is available as 12/31/X8. Prior Year Balance Sheet Assets Cash $45,000 Accounts Receivable $55,000 Materials Inventory $40,000 Work-in-Process Inventory $30,000 Finished Goods Inventory $36,000 Prepaid Expenses $20,000 Plant and Equipment $500,000 Accumulated Depreciation ($140,000) Other Assets $22,000 Total Assets $608,000 Liabilities and Equity Accounts Payable $103,000 Other Current Liabilities $42,000 Income Taxes Payable $25,000 Long-Term Debt $300,000 Total Liabilities $470,000 Common Stock $100,000 Retained Earnings $38,000 Total Equity $138,000 Total Liabilities and Equity $608,000 Information From Recent Budgets for the Coming Year Projected sales are $2,080,000 (13,000 units). Projected direct materials purchases are $525,000. Projected direct materials usage is $510,000. Projected direct labor expense is $420,000. Projected overhead is $390,000. Projected selling expenses are $130,000. Projected administrative expenses are $310,000. Projected cash collections are $1,805,000. Projected payments for materials (accounts payable) are $550,000. Projected payments for other operating expenses (other current liabilities) are $1,155,000. Projected depreciation expense is $60,000 and is already included in manufacturing overhead. Additional Information That Is Available The expected tax rate is 20%. The company is planning a stock issue of $50,000. Income taxes are paid 3 months after year-end. The company anticipates purchasing a new patent for $20,000 during the year. Work-in-Process Inventory is expected to decrease by $2,500. Finished Goods Inventory is expected to increase by $9,000. Due to insurance rate increases, it is expected that prepaid expenses will increase by $5,000. Investment Information A purchase of additional equipment for $80,000 is expected on January 2, 20X9. The purchase will be made using $50,000 cash and long-term debt will be increased by $30,000. Long-Term Debt Information All long-term debt will have a 9% annual rate. A payment of $50,000 including both principal and interest will be made on December 31, 20X9. PLEASE SOLVE THE FOLLOWING: Prepare a pro forma balance sheet still has to be completed.
the pro forma balance sheet still has to be completed. The following information is available as 12/31/X8. Prior Year Balance Sheet Assets Cash $45,000 Accounts Receivable $55,000 Materials Inventory $40,000 Work-in-Process Inventory $30,000 Finished Goods Inventory $36,000 Prepaid Expenses $20,000 Plant and Equipment $500,000 Accumulated Depreciation ($140,000) Other Assets $22,000 Total Assets $608,000 Liabilities and Equity Accounts Payable $103,000 Other Current Liabilities $42,000 Income Taxes Payable $25,000 Long-Term Debt $300,000 Total Liabilities $470,000 Common Stock $100,000 Retained Earnings $38,000 Total Equity $138,000 Total Liabilities and Equity $608,000 Information From Recent Budgets for the Coming Year Projected sales are $2,080,000 (13,000 units). Projected direct materials purchases are $525,000. Projected direct materials usage is $510,000. Projected direct labor expense is $420,000. Projected overhead is $390,000. Projected selling expenses are $130,000. Projected administrative expenses are $310,000. Projected cash collections are $1,805,000. Projected payments for materials (accounts payable) are $550,000. Projected payments for other operating expenses (other current liabilities) are $1,155,000. Projected depreciation expense is $60,000 and is already included in manufacturing overhead. Additional Information That Is Available The expected tax rate is 20%. The company is planning a stock issue of $50,000. Income taxes are paid 3 months after year-end. The company anticipates purchasing a new patent for $20,000 during the year. Work-in-Process Inventory is expected to decrease by $2,500. Finished Goods Inventory is expected to increase by $9,000. Due to insurance rate increases, it is expected that prepaid expenses will increase by $5,000. Investment Information A purchase of additional equipment for $80,000 is expected on January 2, 20X9. The purchase will be made using $50,000 cash and long-term debt will be increased by $30,000. Long-Term Debt Information All long-term debt will have a 9% annual rate. A payment of $50,000 including both principal and interest will be made on December 31, 20X9. PLEASE SOLVE THE FOLLOWING: Prepare a pro forma balance sheet still has to be completed.
Excel Applications for Accounting Principles
4th Edition
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Gaylord N. Smith
ChapterMB: Model-building Problems
Section: Chapter Questions
Problem 14M
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the pro forma
The following information is available as 12/31/X8.
Prior Year Balance Sheet
Assets | |
---|---|
Cash | $45,000 |
$55,000 | |
Materials Inventory | $40,000 |
Work-in-Process Inventory | $30,000 |
Finished Goods Inventory | $36,000 |
Prepaid Expenses | $20,000 |
Plant and Equipment | $500,000 |
($140,000) | |
Other Assets | $22,000 |
Total Assets | $608,000 |
Liabilities and Equity
Accounts Payable | $103,000 |
Other Current Liabilities | $42,000 |
Income Taxes Payable | $25,000 |
Long-Term Debt | $300,000 |
Total Liabilities | $470,000 |
Common Stock | $100,000 |
$38,000 | |
Total Equity | $138,000 |
Total Liabilities and Equity | $608,000 |
Information From Recent Budgets for the Coming Year
- Projected sales are $2,080,000 (13,000 units).
- Projected direct materials purchases are $525,000.
- Projected direct materials usage is $510,000.
- Projected direct labor expense is $420,000.
- Projected
overhead is $390,000. - Projected selling expenses are $130,000.
- Projected administrative expenses are $310,000.
- Projected cash collections are $1,805,000.
- Projected payments for materials (accounts payable) are $550,000.
- Projected payments for other operating expenses (other current liabilities) are $1,155,000.
- Projected depreciation expense is $60,000 and is already included in manufacturing overhead.
Additional Information That Is Available
- The expected tax rate is 20%.
- The company is planning a stock issue of $50,000.
- Income taxes are paid 3 months after year-end.
- The company anticipates purchasing a new patent for $20,000 during the year.
- Work-in-Process Inventory is expected to decrease by $2,500.
- Finished Goods Inventory is expected to increase by $9,000.
- Due to insurance rate increases, it is expected that prepaid expenses will increase by $5,000.
Investment Information
- A purchase of additional equipment for $80,000 is expected on January 2, 20X9.
- The purchase will be made using $50,000 cash and long-term debt will be increased by $30,000.
Long-Term Debt Information
- All long-term debt will have a 9% annual rate.
- A payment of $50,000 including both principal and interest will be made on December 31, 20X9.
PLEASE SOLVE THE FOLLOWING: Prepare a pro forma balance sheet still has to be completed.
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