Can I get help of how to reach the percentage please . Instead of just providing

ID: 2611691 • Letter: C

Question

Can I get help of how to reach the percentage please . Instead of just providing the answer of say 7% Bluth, Inc. Balance Sheet, Dec. 31, 2015 Assets Liabilities +Equity $10,000 Accounts Payable 25,000 Notes Payable 20,000 Accrued Expenses Cash Acct. Rec. Inventory Prepaid Exp. Total Current Assets Fixed Assets Accum. Dep. Total Assets 2,000 57,000 32,000 4,000 85,000 $10,500 10,000 11,000 15,000 38,500 85,000 Long-Term Debt Common Equity Total Liabilities and Equity Bluth's net sales for 2015 were $150 million. Sales growth is expected to be 25 percent in 2016, and all current asset and current liability accounts will have the same percentage of sales as in 2015. Net fixed assets will remain the same dollar amount. There is a 100 percent dividend payout ratio. Prepare a pro forma balance sheet for 2016.

Explanation / Answer

sales of 2015

150000

sales of 2016

150000*(1.25)

187500

2015

% of 2015 sales = (item value/sales of 2015)*100

2016-%of 2016 sales = % of item of 2015 sales*value of sales of 2015

2016

cash

10000

6.67%

187500*6.67%

12506.25

Accounts receivables

25000

16.67%

187500*16.67%

31256.25

Inventory

20000

13.33%

187500*13.33%

24993.75

prepaid expenses

2000

1.33%

187500*1.33%

2493.75

total current assets

57000

38.00%

187500*38%

71250

fixed assets

32000

21.33%

187500*21.33%

39993.75

less accumulated depreciation

-4000

-2.67%

187500*-2.67%

-5006.25

total assets

85000

56.67%

187500*56.67%

106256.3