Question;Q4.;Q5.;Allied Company expects sales of Rs 2.4 million next year and the;same amount the following year. Sales are spread evenly throughout the year. On;the basis of the following information, prepare a forecast income statement and;balance sheet for year end;1.;Cash;Minimum of 4;percent of annual sales.;2.;Accounts;receivable:60-day average;collection period based on annual sales.;3.;Inventories;Turnover of;eight times a year.;4.;Net;fixed assets:Rs 500,000 now.;Capital expenditures equal to depreciation.;5.;Accounts;payable:One month's;purchases.;6.;Accrued;expenses:3 percent of;sales.;7.;Bank;borrowings:Rs 27,000 now.;8.;Can;borrow up to Rs 250,000.;9.;Long-term;debt:Rs 300,000 now;payable Rs 75,000 at year end.;10.;Common;stock:Rs 100,000. No;additions planned.;11.;Retained;earnings:Rs 500,000 now.;12.;Net;profit margin:8 percent of;sales.;13.;Dividends;None.;14.;Cost;of goods sold:60 percent of;sales.;15.;Purchases;50 percent of;cost of goods sold.;16.;Income;taxes:50 percent of before-tax;profits.;Q6. Using the data below produce common size and indexed balance sheet.
Paper#44952 | Written in 18-Jul-2015Price : $22