Question Details

(Answered) Proforma Income Statements


1. Colonial Furniture's net profits before taxes for 2005 totaled $354,000. The company's total retained earnings were $338,000 for 2004 year end and $389,000 for 2005 year end. Colonial is subject to a 26 percent tax rate. How large was the cash dividend declared by Colonial Furniture in 2005?;2. In an effort to analyze Clockwork Company finances, Jim realized that he was missing the company's net profits after taxes for the current year. Find the company's net profits after taxes using the following information.;Return on total assets: 2%;Total Asset Turnover: 0.5;Cost of Goods Sold: $105,000;Gross Profit Margin: 0.30;3. Use the percent of sales method to prepare a pro forma income statement for the year ended December 31, 2004, for Hennesaw Lumber, Inc.;Hennesaw Lumber, Inc. estimates that its sales in 2004 will be $4,500,000. Interest expense is to remain unchanged at $105,000 and the firm plans to pay cash dividends of $150,000 during 2004. Hennesaw Lumber, Inc.'s income statement for the year ended December 31, 2003 is shown below.;Prepare the pro forma income statement;Income Statement;Hennesaw Lumber, Inc.;For the Year Ended December 31, 2003;Sales Revenue $4,200,000;Less: Cost of goods sold 3,570,000;Gross profits $ 630,000;Less: Operating expenses 210,000;Operating profits $ 420,000;Less: Interest expense 105,000;Net profits before taxes $ 315,000;Less: Taxes (40%) 126,000;Net profits after taxes $ 189,000;Less: Cash dividends 120,000;To: Retained earnings $ 69,000;4. If accounts receivable increase by $1,000,000, inventory decreases by $500,000, and accounts payable increase by $500,000, net working capital would;(a) decrease by $500,000.;(b) increase by $1,500,000.;(c) increase by $2,000,000.;(d) experience no change.;Show your work
More Details:

Proforma Income Statements

 


Solution details:
STATUS
Answered
QUALITY
Approved
ANSWER RATING

This question was answered on: Dec 18, 2020

PRICE: $18.50

Solution~00031147583914.zip (25.37 KB)

Buy this answer for only: $18.50

This attachment is locked

We have a ready expert answer for this paper which you can use for in-depth understanding, research editing or paraphrasing. You can buy it or order for a fresh, original and plagiarism-free copy (Deadline assured. Flexible pricing. TurnItIn Report provided)

Pay using PayPal (No PayPal account Required) or your credit card . All your purchases are securely protected by .
SiteLock

About this Question

STATUS

Answered

QUALITY

Approved

DATE ANSWERED

Dec 18, 2020

EXPERT

Tutor

ANSWER RATING

GET INSTANT HELP/h4>

We have top-notch tutors who can do your essay/homework for you at a reasonable cost and then you can simply use that essay as a template to build your own arguments.

You can also use these solutions:

  • As a reference for in-depth understanding of the subject.
  • As a source of ideas / reasoning for your own research (if properly referenced)
  • For editing and paraphrasing (check your institution's definition of plagiarism and recommended paraphrase).
This we believe is a better way of understanding a problem and makes use of the efficiency of time of the student.

NEW ASSIGNMENT HELP?

Order New Solution. Quick Turnaround

Click on the button below in order to Order for a New, Original and High-Quality Essay Solutions. New orders are original solutions and precise to your writing instruction requirements. Place a New Order using the button below.

WE GUARANTEE, THAT YOUR PAPER WILL BE WRITTEN FROM SCRATCH AND WITHIN YOUR SET DEADLINE.

Order Now