Pro forma balance sheet. Next year, California Cement Company will increase its
ID: 2801570 • Letter: P
Question
Pro forma balance sheet. Next year, California Cement Company will increase its plant, property, and equipment by $6,069,000 with a plant expansion. The in er ones wil grow by 75%, accounts receivable will grow by 72% and marketable securities be reduced by 61% to help finance the expansion Assume all other asset accounts will remain the same and the company will use long-term debt to finance the remaining expansion costs (no change in common stock or earnings). Using this information and the balance sheet in the popup window, EE9.for California Cement Company for 2013, prepare a pro forma balance sheet for 2014. How much additional debt will the company need using this pro forma balance sheet? retained Complete the pro-forma balance sheet for 2014 below: (Round to the nearest dollar.) California Cement Company Pro Forma Balance Sheet for the Year Ending December 31, 2014 ASSETS LIABILITIES Current assets Current liabilities Accounts payable Cash Marketable securities Accounts receivable Other current liabilities Total current liabilities Long-term liabilities Long-term debt Other long-term liabilities Total current assets Long-term assets Enter any number in the edit fields and then continue to the next question.Explanation / Answer
Balance Sheet
current assets
current liabilities
cash
1494000
A/P
6128000
marketable securities
1181000
other current liabilities
1139000
accounts receivables
3763000
total of current liabilities
7267000
inventory
2600000
long term liabilities
total of current assets
9038000
long term debt
2437000
Long term asssets
other long term liabilities
1549000
plant property and equipment
6708000
total long term liabilties
3986000
goodwill
4035000
totalliabilities
11253000
intangible assets
1510000
owners equity
total of long term assets
12253000
common stock
2418000
retained earnings
7620000
total of shareholders equity
10038000
total assets
21291000
total of liabilities and shareholders equity
21291000
Proforma Balance sheet
Assets
Liabilities
current assets
previous year
projected
Projected
current liabilities
previous
projected
projected
cash
1494000
1494000
A/P
6128000
6128000
marketable securities
1181000
460590
other current liabilities
1139000
1139000
accounts receivables
3763000
6472360
total of current liabilities
7267000
inventory
2600000
4550000
long term liabilities
total of current assets
12976950
long term debt
2437000
12444950
Long term asssets
other long term liabilities
1549000
1549000
plant property and equipment
6708000
12777000
total long term liabilties
13993950
goodwill
4035000
4035000
total liabilities
21260950
intangible assets
1510000
1510000
owners equity
total of long term assets
18322000
common stock
2418000
2418000
retained earnings
7620000
7620000
total of shareholders equity
10038000
total assets
31298950
total of liabilities and shareholders equity
21291000
31298950
amount of additional debt
new level of long term debt-old level of long term debt
12444950-2437000
10007950
Additional amount of long term debt
previous year
projected
increase
accounts receivables
3763000
6472360
2709360
inventory
2600000
4550000
1950000
marketable securities
1181000
460590
-720410
plant property and equipment
6708000
12777000
6069000
total amount of debt required
10007950
Balance Sheet
current assets
current liabilities
cash
1494000
A/P
6128000
marketable securities
1181000
other current liabilities
1139000
accounts receivables
3763000
total of current liabilities
7267000
inventory
2600000
long term liabilities
total of current assets
9038000
long term debt
2437000
Long term asssets
other long term liabilities
1549000
plant property and equipment
6708000
total long term liabilties
3986000
goodwill
4035000
totalliabilities
11253000
intangible assets
1510000
owners equity
total of long term assets
12253000
common stock
2418000
retained earnings
7620000
total of shareholders equity
10038000
total assets
21291000
total of liabilities and shareholders equity
21291000
Proforma Balance sheet
Assets
Liabilities
current assets
previous year
projected
Projected
current liabilities
previous
projected
projected
cash
1494000
1494000
A/P
6128000
6128000
marketable securities
1181000
460590
other current liabilities
1139000
1139000
accounts receivables
3763000
6472360
total of current liabilities
7267000
inventory
2600000
4550000
long term liabilities
total of current assets
12976950
long term debt
2437000
12444950
Long term asssets
other long term liabilities
1549000
1549000
plant property and equipment
6708000
12777000
total long term liabilties
13993950
goodwill
4035000
4035000
total liabilities
21260950
intangible assets
1510000
1510000
owners equity
total of long term assets
18322000
common stock
2418000
2418000
retained earnings
7620000
7620000
total of shareholders equity
10038000
total assets
31298950
total of liabilities and shareholders equity
21291000
31298950
amount of additional debt
new level of long term debt-old level of long term debt
12444950-2437000
10007950
Additional amount of long term debt
previous year
projected
increase
accounts receivables
3763000
6472360
2709360
inventory
2600000
4550000
1950000
marketable securities
1181000
460590
-720410
plant property and equipment
6708000
12777000
6069000
total amount of debt required
10007950
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