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Proforma Income statement and Balance sheet

The following are the balance sheet and income statements for the year that just ended:

Sales1,400
Operating Costs1,150
EBIT250
Interest20
EBT230
Taxes (30%)69
Net income161
Dividend0
  Cash  60  Accounts payable  50
  Account receivable  80  Notes payable  70
  Inventories  100  Long-term debt  150
  Fixed assets  250  Common stock  50
        Retained earnings  170
  Total assets  490  Total liab. & equity  490

Fixed assets are being used at full capacity and can be increased only by increments of 50%. Sales for the next year are expected to increase by 30%.

Use the percent of sales method to construct a 1st pass pro forma income statement and balance sheet. For the 2nd pass, assume that all the additional needed funds will come in the form of notes payable at an interest rate of 8%.

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