1 Forecast the 2024 Financial Statements based on the assumptions given for each item.
Income Statement
2023 2024
Sales 100,000 Sales growth of 20%
COGS 75,000 75% of Sales
Gross Profit 25,000
Operating expenses
Selling expenses
Advertsing 2000 3% of Sales
Commissions 5000 6% of Sales
Administrative expenses
Office Supplies 3500 constant
Office equipment 2500 constant
Total Operating expenses 13000
Operating Income 12,000
Non-Operating or other revenue
Interest revenues 5000 constant
Gain on sale of Investments 3000 0
Interest expense 500 10% of any debt
Loss from Lawsuit 1500 0
Total non-operating 10000
Net Income 22,000
Balance Sheet
Assets Liabilities
Current Assets Current liabilities
Cash 2,100 4% of Sales Notes payable 5,000 5% of Sales
Petty Cash 100 constant Accounts payable 35,900 40% of Sales
Temporary investments 10,000 constant Wages payable 8,500 constant
Account receivable 40,500 45% of Sales Interest payable 2,900 constant
Inventory 31,000 20,000 Taxes payable 6,100 35% of Net Income
Supplies 3,800 constant Warranty payable 1,100 constant
Prepaid Insurance 1,500 constant Unearned revenues 1,500 constant
Total current assets 89,000 Total current liabilities 61,000
Investments 36,000 constant Long-term liabilities
Notes Payable 20,000 18,000
Property, plant & equipment Bonds Payable 400,000 360,000
Land 5,500 constant Total long-term liabilities 420,000
Land improvements 6,500 constant
Buildings 180,000 300,000 Total liabilities 481,000
Equipment 201,000 constant
Less: accumulated deprec. (56,000) 65,000
Prop, plant & equip -- net 337,000
Intangible assets
Stockholders' Equity
Goodwill 105,000 constant Common Stock 110,000 constant
Trade names 200,000 constant Retained Earnings 220,000 100% of Net Income retained
Total intangible assets 305,000 Accum. Other income 9,000 constant
Less: Treasury stock (50,000) constant
Other assets 3,000 constant Total stockholders' equity 289,000
Total assets 770,000 Total liabilities & Stockholders' equity 770,000
External Funding Required