Even complicated and confusing topics will be easily developed and covered if you request our help writing an essay. Place an order today!

Financing Deficit
Garlington Technologies Inc.'s 2013 financial statements are shown below:
Balance Sheet as of December 31, 2013
Cash $ 180,000 Accounts payable $ 360,000
Receivables 360,000 Notes payable 156,000
Inventories 720,000 Line of credit 0
Total current assets $1,260,000 Accruals 180,000
Fixed assets 1,440,000 Total current liabilities $ 696,000
Common stock 1,800,000
Retained earnings 204,000
Total assets $2,700,000 Total liabilities and equity $2,700,000
Income Statement for December 31, 2013
Sales $3,600,000
Operating costs 3,279,720
EBIT $ 320,280
Interest 18,280
Pre-tax earnings $ 302,000
Taxes (40%) 120,800
Net income 181,200
Dividends $ 108,000
Suppose that in 2014 sales increase by 15% over 2013 sales and that 2014 dividends will increase to $116,000. Forecast the financial statements using the forecasted financial statement method. Assume the firm operated at full capacity in 2013. Use an interest rate of 13%, and assume that any new debt will be added at the end of the year (so forecast the interest expense based on the debt balance at the beginning of the year). Cash does not earn any interest income. Assume that the AFN will be in the of form of a line of credit. Round your answers to the nearest dollar. Do not round intermediate calculations.
Garlington Technologies Inc.
Pro Forma Income Statement
December 31, 2014
Sales $ 
Operating costs $ 
EBIT $ 
Interest $ 
Pre-tax earnings $ 
Taxes (40%) $ 
Net income $ 
Dividends: $ 
Addition to RE: $ 


Garlington Technologies Inc.
Pro Forma Balance Statement
December 31, 2014
Cash $ 
Receivables $ 
Inventories $ 
Total current assets $ 
Fixed assets $ 
Total assets $ 
Accounts payable $ 
Notes payable $ 
Accruals $ 
Total current liabilities $ 
Common stock $ 
Retained earnings $ 
Total liabilities and equity $

testimonials icon
/*! elementor - v3.6.5 - 27-04-2022 */ .elementor-heading-title{padding:0;margin:0;line-height:1}.elementor-widget-heading .elementor-heading...
testimonials icon
Paper details Rationale The students will write an essay explaining the value of digital and direct marketing...
testimonials icon
 There are a varied opinions among experts as to whether Facebook is a SaaS or a PaaS. Justify your position on which type of cloud computi...
testimonials icon
Hey how is it goning? hope you very well. I need your perfect assistance like always with this Marketing assignment. Kindly...
testimonials icon
Running head: PREVENTIVE MEASURES1Health 7BIO116 Week 5 DiscussionPreventative MeasuresOur liver, gallbladder and pancreas play a huge role in the hu...
testimonials icon
Task: Each group should identify a problem situation (HR problem) in an organisation that they are familiar with or they have access to-preferabl...
testimonials icon
Scenario: Daisey Company is a very profitable small business. It has not, however given much consideration to internal control. For example, in a...
testimonials icon
Module 1 – Case LEADERSHIP SELF-AWARENESS Case Assignment For this first Case Assignment, your task is...
testimonials icon
What is strategic management? What are the rolesof mission and vision statements in strategic management? Can anorganization have a success...

Other samples, services and questions:

Calculate Price

When you use PaperHelp, you save one valuable — TIME

You can spend it for more important things than paper writing.

Approx. price
$65
Order a paper. Study better. Sleep tight. Calculate Price!
Created with Sketch.
Calculate Price
Approx. price
$65