Proforma Income statement and Balance sheet
The following are the balance sheet and income statements for the year that just ended:
|Account receivable||80||Notes payable||70|
|Fixed assets||250||Common stock||50|
|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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