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XYZ Corporation published the following financial statements at the end of the year




Question;USE THE FOLLOWING INFORMATION FOR ALL QUESTIONS.;XYZ Corporation published the following financial statements;at the end of the year;Assume the following;All discretionary accounts that are influenced by the policy;decisions are identified by ** in the above financial statements. No changes;are expected in the dividend payout policy and the company;does not expect to raise any new equity.;Depreciation will remain fixed for the next year.;SG&E represents $25,000 in fixed costs and the remainder;of the expense varies with sales.;A payment of $5,000 is due on the long-term debt on March 31;of the next year.;All current accounts on the balance sheet, net fixed assets;and cost of goods sold are accounts that vary with sales.;The tax rate will remain unchanged for the following year.;Next years sales are forecast to be $400,000.;1. Prepare the pro forma income statement and balance sheet;for the next year and answer the following questions.;2. The SG&A expense for the following year is;$66,667;$63,320;$58,333;$33,320;3. The projected value of total asset value at the end of;the following year is;$180,000;$160,000;$145,000;$135,000;4. The projected value of retained earnings at the end of;the following year is;a. $34,000;b. $41,137;c. $44,706;d. $55,379;5. The external financing need (EFN) for the following year;is;a. $11,287;b. $22,097c. $40,960;d. $45,000


Paper#47567 | Written in 18-Jul-2015

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