60.1K

Verified Solution

Link Copied!

Calculate the Income statement and Balance sheet for 2021.

2) (10 Points) Using the financial Statements below and the financial data that follows, please create a pro forma set of financial statements for Marble Comics and determine if they have a need for additional funding or excess cash under the circumstances. Financial Data: 1. Assume that sales will grow by 20%. 2. Accounts Receivable will represent 25% of sales. 3. Inventory is expected to be 20% of sales. 4. Sebring will purchase $600 in fixed assets and book $480 in depreciation. 5. All other spontaneous accounts will grow in proportion to sales. 6. Dividend payout ratio is expected to remain steady. 7. Accounts not mentioned can be assumed to remain unchanged. Marble Comics Group 2020 Income Statement ($ in millions) 2020 905 Sales Operating costs Selling and Gen Adin Depreciation EBIT 522 93 110 180 61 119 Interest EBT or taxable income Taxes (40%) Net Income 30 89 2019 Balance Sheets for Year Ending (Millions of Dollars) 2020 Assets: Cash and Marketable Securities 135 Accounts receivable 214 Inventories 188 Total Current Assets 537 Net Plant and Equipment 890 Total Assets 1427 75 230 240 545 788 1333 Liabilities and equity: Account payable Notes payable Accruals Total current liabilities Long-term bonds 110 300 142 552 440 89 150 77 316 615 55 Common stock (50 million shares) Retained Earnings Total Liabilities and equity 55 380 1427 347 1333 2) (10 Points) Using the financial Statements below and the financial data that follows, please create a pro forma set of financial statements for Marble Comics and determine if they have a need for additional funding or excess cash under the circumstances. Financial Data: 1. Assume that sales will grow by 20%. 2. Accounts Receivable will represent 25% of sales. 3. Inventory is expected to be 20% of sales. 4. Sebring will purchase $600 in fixed assets and book $480 in depreciation. 5. All other spontaneous accounts will grow in proportion to sales. 6. Dividend payout ratio is expected to remain steady. 7. Accounts not mentioned can be assumed to remain unchanged. Marble Comics Group 2020 Income Statement ($ in millions) 2020 905 Sales Operating costs Selling and Gen Adin Depreciation EBIT 522 93 110 180 61 119 Interest EBT or taxable income Taxes (40%) Net Income 30 89 2019 Balance Sheets for Year Ending (Millions of Dollars) 2020 Assets: Cash and Marketable Securities 135 Accounts receivable 214 Inventories 188 Total Current Assets 537 Net Plant and Equipment 890 Total Assets 1427 75 230 240 545 788 1333 Liabilities and equity: Account payable Notes payable Accruals Total current liabilities Long-term bonds 110 300 142 552 440 89 150 77 316 615 55 Common stock (50 million shares) Retained Earnings Total Liabilities and equity 55 380 1427 347 1333

Answer & Explanation Solved by verified expert

See Answer