??? Bercelo Inc. ? 2020 ??????
|
Bercelo Inc 2020 Income Statement |
|
|
Net sales |
6080 |
|
Less: Cost of Goods Sold |
-3,890 |
|
Less: Depreciation |
-$860 |
|
Earnings before interest and taxes |
$1,330 |
|
Less: Interest paid |
-$270 |
|
Taxable Income |
$1,060 |
|
Less: Taxes |
-$360 |
|
Net Income |
$700 |
|
Bercelo Inc Balance Sheet 200 |
|
|
cash |
$560 |
|
Accounts Receivable |
$840 |
|
Inventory |
$1,390 |
|
Total |
$2,790 |
|
Net Fixed Assets |
$4,660 |
|
Total Assets |
$7,450 |
|
Accounts Payable |
$610 |
|
Notes Payable |
$50 |
|
Total |
$660 |
|
Long-term Debt |
$3,480 |
|
Common Stock |
$2,250 |
|
Retained Earnings |
$1,060 |
|
Total Liabilities and owners’ equity |
$7,450 |
a) Assume that Bercelo Inc. is operating at full
capacity. The dividend payout ratio is constant at 50% of income.
Tanya, the financial manager, is forecasting sales will increase by
15% for 2021. Prepare the Pro-forma Income Statement for 2021. (4
Marks)
b) Prepare the Pro-forma Balance Sheet for 2021. (5
marks)
c) What is the external Financing Needed (EFN)?
