Pro Forma Balance Sheet. Given the following data on the Dunes Corporation, project its balance sheet for the coming year:
Present sales: $500,000
Next year’s sales: $800,000
After-tax profits: 5% of sales
Dividend payout ratio: 40%
Present retained earnings: $200,000
Cash as a percent of sales: 4%
Accounts receivable as a percent of sales: 10%
Inventory as a percent of sales: 30%
Net fixed assets as a percent of sales: 35%
Accounts payable as a percent of sales: 7%
Accruals as a percent of sales: 15%
Next year’s common stock: $200,000
Dunes Corporation Balance Sheet December 31, 20X1
ASSETS LIABILITIES AND EQUITIES
Cash (a) Accounts payable (f )
Accounts receivable (b) Notes payable (g)
Inventory (c) Accruals (h)
Net fixed assets (d ) Common stock (i)
Retained earnings (j)
Total (e) Total (k)