Discuss the simplified procedures used to prepare and evaluate the pro forma income statement and the...

Discuss the simplified procedures used to prepare and evaluate the pro forma income statement and the pro forma balance sheet. What ethical issues do you believe are present in these procedures and how does the SOX Act address these concerns? In your response, you should also discuss the judgmental approach.

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Discuss the simplified procedures used to prepare and evaluate the pro forma income statement and the pro forma balance sheet. What ethical issues do you believe are present in these procedures and how does the SOX Act address these concerns? In your response, you should also discuss the judgmental approach.

ekkarill92 answered 1 year ago

prepare a 3-year pro forma income statement and pro forma balance sheet, including expected cash flows...

prepare a 3-year pro forma income statement and pro forma balance sheet, including expected cash flows and all associated assumptions. Company: Bishrom (Nepali eyewear brand) outsources all the manufacturing in china. Please assume all the data. you can make a fake statement. Subject: Entrepreneurial finance

Prepare a pro forma income statement and balance sheet for the 'coming year' for Netflix (NFLX)

• Describe pro forma income and the importance of pro forma income in the evaluation of...

• Describe pro forma income and the importance of pro forma income in the evaluation of the income statement. Choose at least two items that are excluded from pro forma income. Suggest to management why including the items would be misleading to investors and creditors.

Using the income statement from Folder Factory Financials Folder Factory Financials , prepare a pro forma...

Using the income statement from Folder Factory Financials Folder Factory Financials , prepare a pro forma income statement for 2016 if the company projects sales to be $60,000 in 2016. Balance Sheet Folder Factory, Inc. December 31, 2014 and 2015 2015 2014 Assets Cash $ 1,000 $ 500 Accounts receivable 5,000 4,500 Inventory 7,000 6,000 Total current assets $13,000 $11,000 Gross fixed assets $20,000 $15,000 Less: Accumulated depreciation 10,000 9,000 Net fixed assets $10,000 $ 6,000 Total assets $23,000...

Using the simple percent-of-sales method to prepare a pro forma income statement assumes all expenses remain...

Using the simple percent-of-sales method to prepare a pro forma income statement assumes all expenses remain fixed percentages of the sales revenue. Discuss the pros and cons of this approach. For example, you may discuss the validity of assuming fixed expenses or interest expense as a fixed percentage of sales.

Pro forma income statement. Given the income statement in the popup window, for California Cement Company...

Pro forma income statement. Given the income statement in the popup window, for California Cement Company for 2013 and an expected sales growth rate of 6.61 % for 2014, prepare a pro forma income statement for 2014. First, find the percentage of each income statement line from 2013 as a percent of sales. (Round to three decimal places.) Sales Revenue $22,811,000 ____ % Cost of goods sold $-11,638,000 ___% Selling, general, and administrative expenses $-3,973,000 ____% Depreciation expenses $ -1,369,000...

Chapter 4: 3. Fire Corp financial statements: Pro forma income statement Pro forma balance sheet Sales...

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,...

Prepare the following Pro Forma Financial Statements for the proposed new location (pro forma statements in...

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...

1st. Discuss (in detail) the difference between between th Pro Forma (income) Statement vs. the historical...

1st. Discuss (in detail) the difference between between th Pro Forma (income) Statement vs. the historical income statement (the actual numbers). 2nd. Based on your reading from the article, discuss how the Pro Forma forecast is created. Where do the projected sales and revenue come from?

PRO FORMA INCOME STATEMENT Austin Grocers recently reported the following 2016 income statement (in millions of...

PRO FORMA INCOME STATEMENT Austin Grocers recently reported the following 2016 income statement (in millions of dollars): Sales $700 Operating costs including depreciation 500 EBIT $200 Interest 40 EBT $160 Taxes (40%) 64 Net income $96 Dividends $32 Addition to retained earnings $64 For the coming year, the company is forecasting a 15% increase in sales, and it expects that its year-end operating costs, including depreciation, will equal 65% of sales. Austin's tax rate, interest expense, and dividend payout ratio...

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