I need help with part b of question complete the assets section of the pro forma

ID: 2572386 • Letter: I

Question

I need help with part b of question complete the assets section of the pro format balance sheet using judgmental approach.

Homework: Problem Set 1: Chapters 2, 3 and 4 (due 11/19) Score: 2 57 of 30 pts 50( 5 (5 complete) HW Score: 64 83%, 64 83 of 100 Chapter 4 Case (static) Queston Help Preparing Martin Manufacturing's 2013 Pro Forma Financial Statements To improwe its competitive position, Manin Manufacturing is planning to implement a major equipment modemization program Included well be replacement and modernization of key man facturing eqapment at a cost of S4C0,000 in 2013 The planned program is expected to lowed the virable cost per unt af ánshed product Tem Spro an-xpeneced budget analyst, has been charged with preparing a forecast of the ren s 2013 fr ancial poston, assuming replacement and mod mat on of man acting equpment She lats to use the 2012 fnancial stat ernets aong with the key prapcted Enancal data summarized in the foilowing table To Do a. Use the histoncal and projected fnancial data proeded to prepare a pro foma ncome statement for the year ended December 31. 2013 (Hnt Use the percent-ol-sales method to estimate all values except depreciation expense and interest expense, which havwe been estimated by management and included in the b. Use the opced inancial dea along wich nelevant data from the pro forms income statement prepared in part (a)to prepare the pro forms talance sheet a Dacember 31, 2013 Hnt Use the judgmental appreach) c. Wil Martin Mansf acturing Compatry need to obisn external fnancing to fund the proposed equipment modamization program? Explain Martin Maulacturing Company Pro Forma Income Statement for the Year Ended December 31, 2013 Sales revenue Less Cost ef goods sols Gross profies Less Operabng expenses 6,500,020 4, 744 038 5 1,755.962 1000 % T2 9852 Seling expenae and general and admnistrative expense $ 1.365 319 185 000 210049 % Deprecition expense Total operating expenses Opaai ng prafts Less: Interest expense Net profts betore taxes Less Taues (40%) Tatal profns ater taxes S 1,550,319 $ 205 ,643 97 000 5 103,643 43.457 S ,186 Enter any number in the edit fields and then click Check Answer parts remaining Clear Al Check Answer

Explanation / Answer

Inventory Turnover = Cost of goods sold

Average Inventory

7 = $47,44,038

Average Inventory

Average inventory = $47,44,038

Average inventory = $677,719.71

Average Collection period = 365

Receivable Turnover

Receivable Turn over = Sales Revenue

Average accounts receivable

Receivable Turn over = 365/50 days = 7.3

7.3 = $6,500,000

Average accounts receivable

Average accounts receivable = $6,500,000

7.3

Average accounts receivable = $890,411

Current Assets

Cash

$25,000.00

Accounts receivable

$890,411.00

Inventories

$677,719.71

Total Current Assets

$15,93,130.67

Gross Fixed assets

$4,00,000.00

Less: Accumulated depreciation

-$1,85,000.00

Net Fixed assets

$2,15,000.00

Total Assets

$18,08,130.67