# The FINC 5000 Associates Corporation (FAC) has begun selling a new product and they want you to help them with next

Question # 00005509 Posted By: spqr Updated on: 12/16/2013 02:50 PM Due on: 12/31/2013
Subject Accounting Topic Accounting Tutorials:
Question
1. The FINC 5000 Associates Corporation (FAC) has begun selling a new product and they want you to help them with next year’s pro forma financial statements. Using the worksheet below, complete the company’s forecast.

Assumptions:

To begin with, FAC is sure sales will grow 20% next year. Assume that is true. Then assume that COGS, Current Assets, and Current Liabilities all vary directly with Sales (that means if sales grows a certain percentage, then the account in question will grow by that same percentage). Assume that fixed expenses will remain unchanged and that \$2,000 worth of new Fixed Assets will be obtained next year. Lastly, the current dividend policy will be continued next year.

FINC 5000 Associates Corporation
Financial Forecast

Estimated
This year for next year

Sales \$10,000 ________
COGS 4,000 ________
Gross Profit 6,000 ________
Fixed Expenses 3,000 ________
Before Tax Profit 3,000 ________
Tax @ 33.3333% 1,000 ________
Net Profit \$2,000 ________

Dividends \$0 ________

Current Assets \$25,000 ________
Net Fixed Assets 15,000 ________
Total Assets \$40,000 ________

Current Liabilities \$17,000 ________
Long term debt 3,000 ________
Common Stock 7,000 ________
Retained Earnings 13,000 ________
Total Liabs & Eq \$40,000 ________

(AFN) = ________
Tutorials for this Question
1. ## Solution: The FINC 5000 Associates Corporation (FAC) has begun selling a new product and they want you to help them with next

Tutorial # 00005315 Posted By: spqr Posted on: 12/16/2013 02:51 PM
Puchased By: 6
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all vary directly with Sales (...
Attachments
2013-12-16_062804_finc_5000.xls (20 KB)
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