Prepare the
following Pro Forma Financial Statements for the proposed new
location (pro forma statements in this case are budgeted statements
for 2018 based on the new location scenario at the bottom of the
page)
Pro Forma Income Statement
Pro Forma Balance Sheet
PEYTON APPROVED PRO FORMA
INFORMATION
The company is planning to
open another location in 2018 . Prepare pro forma financials for
2018 for the new location using the following information:
1. Cost of leasing commercial
space: $1,500...
A. What do pro forma financial statements show?
B. What are pro forma financial statements based on?
C. What are the strategic benefits of making financial
projections on pro forma statements?
Chapter 4:
3. Fire Corp financial statements:
Pro forma income statement
Pro forma balance sheet
Sales
$ 32,000
Assets
$25,300
Debt
$ 5,800
Costs
$ 24,400
________
Equity
$ 19,500
Net income
$ 7,600
Total
$25,300
Total
$ 25,300
It expects 15% sales increase. It also predicts every item on
the balance sheet will increase
by 15% as well.
1.Create the pro forma statements.
2. What’s the plug variable here?
3. If Fire Corp pays half of income as dividend,...
Which of the following financial statements is usually prepared
first?
Select one:
A.
Statement of retained earnings.
B.
Income statement.
C.
Income tax return.
D.
Balance sheet.
FORECASTING FINANCIAL STATEMENTS -
Below is a pro-forma income statement and balance sheet
for Company A for a 5-year period and a terminal year, based on
various assumptions, which already have been
completed.
Company A
Income
Statement
For
the Years Ended
2017
2018
2019
2020
2021
2022
Terminal year 2023
Sales
550.00
825.00
990.00
1,138.50
1,252.35
1,340.01
1,393.62
1.50
(825*120%)
(990*115%)
(1138.50*110%)
(1252.35*107%)
(1340.01*104%)
Cost of Sales
275.00
288.75
...
List the reasons for preparing pro forma financial
statements from GAAP financial statements. What are
typical adjustments made to GAAP statements when
preparing pro forma statements used in forecasting?
Pro Forma statements in general: “Pro forma” means “made
in advance,” and consists of best (hopefully informed) guesses.
Which is more dangerous to the company: overestimating sales or
underestimating sales? (In your answer describe the downside to
either mistake. Is there an upside to either mistake? If so,
describe that/those as well.)
The first financial statement that is prepared is the: A. Income Statement. B. Balance Sheet. C. Statement of Retained Earnings D. Statement of Cash Flows
Which of the following financial statements is prepared as at a
specific date?
Income statement
Balance sheet
Cash flow statement
Statement of owner's equity