Table 4.8 Balance Sheet
Wirl Wind Company
-The Wirl-Wind Company of America is trying to plan for the next year. Using the current income statement and balance sheet given in Table 4.8, and the additional information provided, prepare the company's pro forma statements.
∙ Sales are projected to increase by 15 percent.
∙ Total of $75,000 in dividend will be paid.
∙ A minimum cash balance of $650,000 is desired.
∙ A new asset for $50,000 will be purchased.
∙ Depreciation expense for next year is $50,000.
∙ Marketable securities will remain the same.
∙ Accounts receivable, inventory, accounts payable, notes payable, and accruals will increase by 15 percent.
∙ $30,000 new issue of bond will be sold.
∙ No new stock will be issued.

Question

Table 4.8  Balance Sheet
Wirl Wind Company 
-The Wirl-Wind Company of America is trying to plan for the next year. Using the current income statement and balance sheet given in Table 4.8, and the additional information provided, prepare the company's pro forma statements.
∙ Sales are projected to increase by 15 percent.
∙ Total of $75,000 in dividend will be paid.
∙ A minimum cash balance of $650,000 is desired.
∙ A new asset for $50,000 will be purchased.
∙ Depreciation expense for next year is $50,000.
∙ Marketable securities will remain the same.
∙ Accounts receivable, inventory, accounts payable, notes payable, and accruals will increase by 15 percent.
∙ $30,000 new issue of bond will be sold.
∙ No new stock will be issued.

Quizplus · Accepted Answer

The Answer of Table 4.8  Balance Sheet
Wirl Wind Company 
-The Wirl-Wind Company of America is trying to plan for the next year. Using the current income statement and balance sheet given in Table 4.8, and the additional information provided, prepare the company's pro forma statements.
∙ Sales are projected to increase by 15 percent.
∙ Total of $75,000 in dividend will be paid.
∙ A minimum cash balance of $650,000 is desired.
∙ A new asset for $50,000 will be purchased.
∙ Depreciation expense for next year is $50,000.
∙ Marketable securities will remain the same.
∙ Accounts receivable, inventory, accounts payable, notes payable, and accruals will increase by 15 percent.
∙ $30,000 new issue of bond will be sold.
∙ No new stock will be issued.