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Finance

In: Business and Management

Submitted By joeqy
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Accounting for Business Analysis (AF5115)
Assignment Cover (1st Semester, 2012/2013)

Class | Monday | Name of ALL Students (University No.) | Zhao Changhao 12126229G | | Liang Zuqi 12133937G | | Liu Lihong 12122573G | | Tian Bin 12138351G | Group No. | 7 | Assignment No. | Chapter 9 | Date of submission | 10/12/2012 |

Problem 9-3 Preparing Pro Forma Financial Statements

a. Use provided ratios to prepare a projected income statement, balance sheet, and statement of cash flows for Year 3.

Income Statement | Year 3 | Net Sales | $56,4341 | Cost of Goods | 34,2723 | Gross Profit | 22,1622 | SG&A Expense | 7,7264 | Depreciation & Amortization Expense | 1,6615 | Interest Expense | 2376 | Income Before Tax | 12,5387 | Income Tax Expense | 3,7618 | Net Income | 8,7779 | Outstanding Shares | 2,976 |

Note: 1. Net Sales: 56,434 = 47,716 × 1.1827 2. Gross Profit: 22,162 = 56,434 × 39.27% 3. Cost of Goods: 34,272 = 56,434 – 22,162 4. SG&A Expense: 7,726 = 56,434 × 13.69% 5. Depreciation & Amortization Expense: 1,661 = 18,956 × 8.76% 6. Interest Expense: 237 = 4,799 × 4.94% 7. Income Before Tax: 12,538 = 22,162 – 7,726 – 1,661 – 237 8. Income Tax Expense: 3,761 = 12,538 × 30% 9. Net Income: 8,777 = 12,538 – 3,761

Balance Sheet | 2003 | Cash | 5,16312 | Receivables | 6,1681 | Inventories | 4,2312 | Other Current Assets | 880 | Total Current Assets | | | | PP&E | 24,0583 | Accumulated Depreciation | 7,5144 | Net PP&E | 16,5445 | Other Noncurrent Assets | 17,942 | Total Assets | 50,92911 | | | Account Payable & Accrued Liabilities | 6,9806 | ST Debt & Current Maturities of LT Debt | 4,067 | Income Taxes Payable | 1,8967 | Total Current Liabilities | 12,9438 | | | Deferred Income Taxes

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