LUKE’S HOLIDAY SUPPLIES, INC. Pro Forma Statements Problem A) 1. Income Statement Balance Sheet Year Ended 2018 12/31/18 Sales $12,520 Cash $ 110 Cost of Goods Sold 9,698 Marketable...

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LUKE’S HOLIDAY SUPPLIES, INC.
Pro Forma Statements Problem
A)       1.            Income Statement                                                        BalanceSheet
                            Year Ended2018                                                             12/31/18
           Sales                                             $12,520               Cash                                                   $   110
           Cost of Goods Sold                          9,698               Marketable Securities 360
           GrossProfit                                      2,882               Accounts Receivable 2,220
           Expenses                                          1.594               Inventory 3,210
           Earnings Before Interest and Tax     1,228               Total Current Assets 5,900
           Interest                                                  278
Earnings BeforeTax                          950               Property/Plant/Equipment      4,730
           Tax(40%)                                          380               Accumulated Depreciation     680
           NetIncome                                         570                  Net Fixed Assets 4,050

Total Assets $ 9,950
                                                                                              AccountsPayable                              $1,020
                                                                                              Notes Payable                                      950
                                                                                              AccruedExpenses                                 610
                                                                                               AccruedTax                                            450
                                                                                                  Total Current Liabilities 3,030
                                                                                               Long Term Liabilities 2,500

                                                                                                   Total Liabilities 5,530
Common Stock – no par 2,000
Retained Earnings 2,420 TotalEquity                                  4,420
                                                                                              Total Liabilities and Equity           $9,950
Based on the 2018 Financial Statements above, compute ProForma’s for 2019 using the percent of sales method using thefollowing assumptions:
24.6% growth rate in sales,
Tax rate remains at 40%, and
Dividend payout remains at $450

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a LUKES HOLIDAY SUPPLIES INC Income statement Current Percentage of Sales Proforma Sales 1252000 100000 1559992 Cost 969800 77460 1208371 Gross Profit 282200 22540 351621 Expenses 159400 12732 198612 EBIT 122800 9808 153009 Less Interest 27800 27800 EBT 95000 125209 See Answer

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LUKE’S HOLIDAY SUPPLIES, INC.Pro Forma Statements ProblemA) 1. Income Statement BalanceSheet Year Ended2018 12/31/18 Sales $12,520 Cash $ 110 Cost of Goods Sold 9,698 Marketable Securities 360 GrossProfit 2,882 Accounts Receivable 2,220 Expenses 1.594 Inventory 3,210 Earnings Before Interest and Tax 1,228 Total Current Assets 5,900 Interest 278Earnings BeforeTax 950 Property/Plant/Equipment 4,730 Tax(40%) 380 Accumulated Depreciation 680 NetIncome 570 Net Fixed Assets 4,050 Total Assets $ 9,950 AccountsPayable $1,020 Notes Payable 950 AccruedExpenses 610 AccruedTax 450 Total Current Liabilities 3,030 Long Term Liabilities 2,500 Total Liabilities 5,530Common Stock – no par 2,000Retained Earnings 2,420 TotalEquity 4,420 Total Liabilities and Equity $9,950Based on the 2018 Financial Statements above, compute ProForma’s for 2019 using the percent of sales method using thefollowing assumptions:24.6% growth rate in sales,Tax rate remains at 40%, andDividend payout remains at $450