BUSI 420 Textbook Assignment 4 Pro Forma Financial Statements Assignment solutions complete answers

BUSI 420 Textbook Assignment 4 Pro Forma Financial Statements Assignment solutions complete answers

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Question 1

 

Kiwi Fruit Company Balance Sheet
  Cash and equivalents
 
  Operating assets
 
  Property, plant, and equipment
 
  Other assets
 
  Total assets
 
  Current liabilities
 
  Long-term debt
 
  Other liabilities
 
  Total liabilities
 
  Paid in capital
 
  Retained earnings
 
  Total equity
 
  Total liabilities and equity
 
 

Kiwi Fruit Company Income Statement
  Net sales
 
 
  Cost of goods sold
 
  Gross profit
 
  Operating expense
 
  Operating income
 
  Other income
 
  Net interest expense
 
  Pretax income
 
  Income tax
 
 
  Net income
 
  Earnings per share
 
  Shares outstanding
 
  Recent price
 
 

Kiwi Fruit Company Cash Flow Statement
  Net income
 
  Depreciation and amortization
 
  Changes in operating assets
 
  Changes in current liabilities
 
  Operating cash flow
 
  Net additions to properties
 
  Changes in other assets
 
  Investing cash flow
 
  Issuance/redemption of long-term debt
 
  Dividends paid
 
  Financing cash flow
 
  Net cash increase
 
 

Prepare a pro forma income statement, balance sheet, and cash flow statement for Kiwi Fruit assuming a 10 percent increase in sales. (Leave no cells blank - be certain to enter "0" wherever required. Negative amounts should be indicated by a minus sign. Input all amounts as thousands of dollars. Round earnings per share to 2 decimal places. Omit the "$" sign in your response.)

 

Amounts are in thousands of dollars (except number of shares and price per share):
  

Kiwi Fruit Company Balance Sheet
 
 
 
  Cash and equivalents
$
570  
  Operating assets
 
650  
  Property, plant, and equipment
 
2,700  
  Other assets
 
110  
 
 
 
  Total assets
$
4,030  
 
 
 
 
 
  Current liabilities
$
920  
  Long-term debt
 
1,280  
  Other liabilities
 
120  
 
 
 
  Total liabilities
$
2,320  
 
 
 
 
 
  Paid in capital
$
340  
  Retained earnings
 
1,370  
 
 
 
  Total equity
$
1,710  
 
 
 
  Total liabilities and equity
$
4,030  
 
 
 
 
 
 
    

Kiwi Fruit Company Income Statement
 
 
 
 
  Net sales
$
7,800
 
  Cost of goods sold
 
(5,900
)
 
 
 
 
  Gross profit
$
1,900
 
  Operating expense
 
(990
)
  
 
 
 
  Operating income
$
910
 
  Other income
 
105
 
  Net interest expense
 
(200
)
  
 
 
 
  Pretax income
$
815
 
  Income tax
 
(285
)
 
 
 
 
  Net income
$
530
 
 
 
 
 
 
 
 
  Earnings per share
$
2.00
 
  Shares outstanding
 
265,000
 
  Recent price
$
34.50
 
 
   

Kiwi Fruit Company Cash Flow Statement
 
 
 
 
  Net income
$
530
 
  Depreciation and amortization
 
175
 
  Changes in operating assets
 
(90
)
  Changes in current liabilities
 
(120
)
 
 
 
 
  Operating cash flow
$
495
 
  
 
 
 
  Net additions to properties
$
180
 
  Changes in other assets
 
(80
)
  
 
 
 
  Investing cash flow
$
100
 
  
 
 
 
  Issuance/redemption of long-term debt
$
(190
)
  Dividends paid
 
(220
)
 
 
 
 
  Financing cash flow
$
(410
)
  Net cash increase
$
185
 
 
 
 
 
 
 
 
 
  

Prepare a pro forma income statement, balance sheet, and cash flow statement for Kiwi Fruit assuming a 10 percent increase in sales. (Leave no cells blank - be certain to enter "0" wherever required. Negative amounts should be indicated by a minus sign. Input all amounts as thousands of dollars. Round earnings per share to 2 decimal places. Omit the "$" sign in your response.)
    

Kiwi Fruit Company Pro Forma Income Statement
 
 
  Net sales
$    
  Cost of goods sold
   
  
 
  Gross profit
$    
  Operating expense
   
  
 
  Operating income
$    
  Other income
   
  Net interest expense
   
 
 
  Pretax income
$    
  Income tax
   
 
 
  Net income
$    
 
 
 
  Earnings per share
$    
  Shares outstanding
   
 
  

Kiwi Fruit Company Pro Forma Cash Flow Statement
 
 
  Net income
$    
  Depreciation and amortization
   
  Changes in operating assets
   
  Changes in current liabilities
   
 
 
  Operating cash flow
$    
  Net additions to property
$    
  Changes in other assets
   
 
 
  Investing cash flow
$    
 
 
  Issuance/redemption of long-term debt
$    
  Dividends paid
   
 
 
  Financing cash flow
$    
  Net cash increase
$    
 
 
 
 
   

Kiwi Fruit Company Pro Forma Balance Sheet
 
 
  Cash and equivalents
$    
  Operating assets
   
  Property, plant, and equipment
   
  Other assets
   
 
 
  Total assets
$    
 
 
 
  Current liabilities
$    
  Long-term debt
   
  Other liabilities
   
 
 
  Total liabilities
$    
  Paid in capital
$    
  Retained earnings
   
 
 
  Total equity
$    
  Total liabilities and equity