Question

 Next​ year, National Beverage Company will increase its​ plant, property, and equipment by $ 4,045,000 with a plant expansion. The inventories will grow by 31 %​, accounts receivable will grow by 18 %​, and marketable securities will be reduced by 51 % to help finance the expansion. Assume all other asset accounts will remain the same and the company will use​ long-term debt to finance the remaining expansion costs​ (no change in common stock or retained​ earnings). Using this information and the balance sheet in the popup​ window, LOADING...​, for National Beverage Company for​ 2013, prepare a pro forma balance sheet for 2014. How much additional debt will the company need using this pro forma balance​ sheet?

National Beverage Company
Balance Sheet for the Year Ending December 31, 2013
ASSETS			LIABILITIES
Current assets			Current liabilities
Cash	$	2,423,000	Accounts payable	$	5,683,000
Marketable securities	$	1,601,000	Other current liabilities	$	3,262,000
Accounts receivable	$	2,790,000	Total current liabilities	$	8,945,000
Inventories	$	1,699,000	Long-term liabilities
Total current assets	$	8,513,000	Long-term debt	$	1,382,000
Long-term assets			Other long-term liabilities	$	2,893,000
Plant, property, and equipment	$	13,700,000	Total long-term liabilities	$	4,275,000
Goodwill	$	1,405,000	Total liabilities	$	13,220,000
Intangible assets	$	6,430,000	OWNERS' EQUITY
Total long-term assets	$	21,535,000	Common stock	$	6,814,000
			Retained earnings	$	10,014,000
			Total owners' equity	$	16,828,000
			TOTAL LIABILITIES AND
TOTAL ASSETS	$	30,048,000	OWNERS' EQUITY	$	30,048,000

you need to fill :

National Beverage Company
Balance Sheet for the Year Ending December 31, 2013
ASSETS			LIABILITIES
Current assets			Current liabilities
Cash	$		Accounts payable	$
Marketable securities	$		Other current liabilities	$
Accounts receivable	$		Total current liabilities	$
Inventories	$		Long-term liabilities
Total current assets	$		Long-term debt	$
Long-term assets			Other long-term liabilities	$
Plant, property, and equipment	$		Total long-term liabilities	$
Goodwill	$		Total liabilities	$
Intangible assets	$		OWNERS' EQUITY
Total long-term assets	$		Common stock	$
			Retained earnings	$
			Total owners' equity	$
TOTAL ASSETS	$		TOTAL LIABILITIES AND OWNERS' EQUITY	$

How much additional debt will be estimated using this pro forma balance​ sheet? ​(Round to the nearest​ dollar.)

Answer 1

Property Plant and equipment increase by 4,045,000, therefore total Property Plant and Equipment would be

= 13,700,000 + 4,045,000

= 17,745,000$

Invenotry Increases by 31% = 1699000*(1+31%) = 2,225,690 $

Accounrs Receivables will increase by 18% = 2,790,000*(1+18%) = 3,292,200$

Marketable Securities decrease by 51% = 1,601,000*(1-51%) = 784,490$

ASSETS	Factors	Amount (In Dollars)	LIABILITIES	Amount (In Dollars)
Current assets			Current liabilities
Cash		2423000	Accounts payable	5683000
Marketable securities	-51%	784490	Other current liabilities	3262000
Accounts receivable	18%	3292200	Total current liabilities	8945000
Inventories	31%	2225690	Long-term liabilities
Total current assets		8513000	Long-term debt	1382000
Long-term assets			Other long-term liabilities	2893000
Plant, property, and equipment	4045000	17745000	Total long-term liabilities	4275000
Goodwill		1405000	Total liabilities	13220000
Intangible assets		6430000	OWNERS' EQUITY
			Common stock	6814000
			Retained earnings	10014000
			Total owners' equity	16828000
Total long-term assets		42818380	Total Liabilities and Equity	30048000

After Adjustments Total Assets = 42,818,380 $

Liabilities previously are 30,048,000$

Therefore New Debt that has to be issued = After Adjustments Total Assets - Liabilities previously

= 42,818,380 - 30,048,000

= 12,770,380 $