6-12 FORECASTING PRO FORMA FINANCIAL STATEMENTS;Prepare a pro forma income;statement and balance sheet for Webb Enterprises, found in Problem 6-7, where revenues are expected to grow by 20% in 2011. Make the following assumptions in making;your forecast of the?rm?s balance sheet for 2011;? The income statement expenses are a constant percent of revenues except for interest, which remains equal in dollar amount to the 2010 level, and taxes, which equal;40% of earnings before taxes.;? The cash and marketable securities balance remains equal to $500, and the remaining current asset accounts and?xed assets increase in proportion to revenues for;2010.;? Net property, plant, and equipment increase in proportion to the increase in revenues.;? Accounts payable increase in proportion to?rm revenues.;? Owners? equity increases by the amount of?rm net income for 2011 (no cash dividends are paid).;? Long-term debt remains unchanged, and short-term debt changes in an amount that balances the balance sheet.;6-13 FORECASTING FIRM FCF Using your pro forma?nancial statements from Problem 6-12, estimate the?rm?s FCF for 2011.
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