The Tony DeBenedictis Company’s 20X2 sales is expected to be $12 million. The following financial statement items vary directly with sales by the percentages given.
Cash: 4%
Accounts receivable: 15%
Inventories 20%
Net fixed assets: 35%
Accounts payable: 18%
Accruals: 15%
Profit margin on sales: 6%
The dividend payout ratio is 40 percent; the 20X1 retained earnings was $4 million; and notes payable, common stock, and retained earnings are equal to the amounts shown on the balance sheet below:
Complete the following pro forma balance sheet:
Pro Forma Balance Sheet (in Thousands of Dollars)
Cash $ (a) Accounts payable $ (h)
Accounts receivable (b) Notes payable 1,200
Inventories (c) Accruals (i)
Total current assets $ (d ) Total current liabilities $ ( j)
Net fixed assets (e) Debentures (k)
Common stock 1,000
Retained earnings 1,680
Total assets $ ( f ) Total liabilities and equity $ (g)